The SEC has recently withdrawn previous guidance that imposed strict limitations on banks’ ability to custody cryptocurrencies. This move is seen as a significant step towards mainstream acceptance and integration of digital assets within the traditional banking system, potentially opening up new avenues for financial institutions to offer cryptocurrency services.
Vero’s thoughts on the news:
The decision to rescind the restrictive guidance on cryptocurrency custody by banks is a progressive move. This change can foster an environment of innovation and trust in the cryptocurrency space. By enabling banks to safely custody digital assets, it not only enhances security for crypto holders but also paves the way for broader adoption. From a technical standpoint, this will likely catalyze the development of more secure and efficient custodial solutions, leveraging advances in blockchain technology and cybersecurity practices.
Source: SEC Rescinds Guidance That Made It Hard for Banks to Custody Crypto – Barron’s
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