Cryptocurrencies propose a strong idea that is built on the essence of decentralization, with no single state, bank, or financial entity having control of the people’s money but the people themselves. This is a concept that goes against the common financial systems or the centralized platforms. There might be a common ground between the both so these can coexist with each other, or so is the idea, which currently rests under regulatory oversight in the United States.
The adoption rate for cryptocurrencies is over the sky, which clearly means that their significance and need by the financial institutions and commerce platforms can’t go unnoticed. But for cryptocurrencies to work with their fiat counterparts, a regulatory system must be put into perspective and practice, so this could be achieved. A later statement has been released, which states that the US regulators would now be outlining different crypto rules for banks. It means that all major financial institutions which would provide their users or clients with crypto-related services such as trading and investment would have to comply with a sophisticated list of rules drafted by the US regulators.
Ground Rules for Financial Institutions
Among these regulators would be the office of the Comptroller of the currency, the Federal Reserve, and the Federal Deposit Insurance Corporation. These would come together to determine the very framework which would allow the banks to interact with cryptocurrencies. These rules would go into effect no sooner than 2022, and until then, the work to draft and contemplate these would continue. This decision might not have come any sooner, or it might not be put into objectivity at all if the adoption rates for crypto were not so incredibly significant.
There are a number of bleak areas within crypto adoption, such as money laundering and exposure of the user’s data when trading with cryptocurrencies. These are the holes that need to be filled properly before banks can start working with crypto. Because if it isn’t done right now, then it would only mean more danger and consistent repercussions for the end consumer. So, it is decided that until these attributes or concerned areas of cryptocurrency are not properly defined and approached, the banks can’t work with crypto.