Pro-crypto banks: Does the SEC want to close this episode?

The downfall of Signature Bank and Silvergate was seen by some enthusiasts as a desire by the US government to bring down pro-crypto banks. An assertion quickly denied by regulators and some politicians in the United States. But to see the aggressiveness of the SEC, part of which is reflected in its new cryptocurrency regulatory policy, the crypto-friendly banks would not be welcome in the local financial ecosystem.

SEC slammed for crypto custody reform

After the FTX scandal, the SEC and the CFTC had no choice but to shake up the cryptocurrency giants. Paxos, Coinbase, Kraken… and now Binance.US are currently worried by the American financial police.

Aside from Wells review shows and investigations into these crypto exchanges, SEC also reportedly intends to revise rules for custody of financial assets. And cryptocurrencies would not be excluded, if we take into account a May 15 release of The Block.

Informed of the message contained in this initiative, Republicans in the United States Congress have issued comments.

” Recent joint statements by federal banking regulators have discouraged federally chartered banks from holding digital assets or even holding the deposits of digital asset companies. As a result, many digital asset companies have opted to keep their assets in state-licensed banks and trusts. Thus, the issue of the proposal regarding the limitation of qualified custodians to federally chartered entities is of great concern, particularly as it applies to digital assets. “, can we read in the document issued by Patrick McHenry’s team.

No question of letting the SEC dictate anything regarding the freedom of pro-crypto banks wanting to do business in the sector.

Collaboration limited to qualified dealers

The status of “qualified depositary” would therefore be the prerequisite for a bank wanting to work with players in the cryptosphere. However, this is all there is to worry about in the eyes of banks such as American Bankers Association, Fidelity Investments, Blackston, Bridgewater Associates, Bank of America, etc.

For them, this proposal could have a significant impact on their business “.

But against all odds, Circle endorsed this SEC initiative.

” Circle supports SEC goals by proposing the safeguard rule and proposals including expanding the rule to include crypto assets among other client positions “. Jeremy Allaire’s company, once troubled by SEC politics, sees it as a better alternative for protect investors and increase confidence in the cryptocurrency industry.