As a seasoned crypto investor with over a decade of experience navigating the volatile and evolving landscape of digital assets, I find myself increasingly alarmed by the latest developments in the US regulatory sphere. The ongoing crackdown on crypto-friendly banks by the US Federal Reserve is reminiscent of a game of whack-a-mole, where one bank is targeted after another for offering much-needed custody services to the industry.
The U.S. Federal Reserve has targeted several banks that want to provide cryptocurrency custody services, and recently, it issued a stop-and-desist order to United Texas Bank based in Dallas for significant shortcomings in adhering to anti-money laundering regulations when dealing with crypto companies
US Fed Targeting Bank on Crypto Custody Offerings
I’s to Pro/:, the participant in this case
The Federal Reserve in the United States has allowed United Texas Bank a 90-day window to present a detailed five-point strategy that aligns with Anti-Money Laundering (AML) regulations. This move represents another instance of a cryptocurrency-friendly bank encountering scrutiny from American regulatory bodies. Earlier this month, Customers Bank experienced similar regulatory focus from U.S. officials. Members of the cryptocurrency sector are now expressing doubts about these regulatory actions
ANOTHER CRYPTO BANK, ANOTHER ENFORCEMENT ACTION…
— Caitlin Long (@CaitlinLong_) September 4, 2024
According to Tyler Winklevoss, co-founder of Gemini, when Harris indicated her desire to “restart” with the cryptocurrency sector, everyone believed it would be an improvement. However, it appears that what she actually meant was detrimental instead
Despite the U.S. Federal Reserve focusing on various cryptocurrency custody solution providers, experts have voiced concerns about why American regulators like the SEC are dissuading federally-regulated banks from providing custodial services. Meanwhile, foreign regulators are promoting local banking institutions. Just yesterday, Swiss Bank ZKB unveiled its Bitcoin and Ethereum trading and custody facility
Crypto ETF Issuers Are At Risk
/3/2001500- The title of, or “The effect, hackerphr/
2021-29: A new approach to using the new Coinbase system, the same as the one used before. E.T
2015-2023/ Coinbase’s efforts would be sufficient to preventive
It doesn’t bode well that nearly all crypto ETF issuers have the same custodian for all their $BTC and $ETH. This makes @coinbase a potential single point of failure and that’s scary.
— Eleanor Terrett (@EleanorTerrett) September 4, 2024
As a crypto investor, I too voiced my concerns about the SEC and U.S. Fed’s policies that deter federally regulated banks from providing crypto custody services under SAB 121. I believe these rules limit the number of crypto custodians, leading to market centralization and increased vulnerability. Coinbase’s Chief Legal Officer promptly addressed my apprehensions about Coinbase becoming the primary custodian for all ETF issuers
I believe it’s the exact opposite of fear-inducing. A vast array of the globe’s most prominent and discerning organizations rely on us as their top choice for safeguarding their clients’ digital possessions
— paulgrewal.eth (@iampaulgrewal) September 4, 2024
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2024-09-05 07:34