This article comes fromThe Block, Original Author: Kollen Post
Odaily Translator | Nian Yin Si Tang
This article comes from, Original Author: Kollen PostOdaily Translator | Nian Yin Si Tang
According to the April 27
An official blog post
, US Bank will partner with an unnamed sub-custodian to offer a new cryptocurrency custody product.Christine Waldron, chief global strategy officer at Bank of America Global Fund Services (Global Fund Services), told The Block, "We have made choices and are currently moving forward with operational integration, risk and compliance processes." However, when these services will go live There is no firm timetable yet.Bank of America is one of the largest banks in the country in terms of assets under management. The company's blockchain and crypto business dates back to 2015. Those services have expanded in recent months, thanks in large part to new policies from the Office of the Comptroller of the Currency, or OCC.
In mid-2020, the Office of the Comptroller of the Currency under former acting administrator Brian Brooks
Authorize U.S.-based National Bank to Custody Crypto Assets
, and then the Office of the Comptroller of the Currency began to issue National Trust licenses to cryptocurrency companies. So far, three encryption companies, Protego, Anchorage and Paxos, have obtained the license.
The Office of the Comptroller of the Currency has successively launched a series of policies favorable to the encryption industry. On September 22, 2020, according to new guidance from the Office of the Comptroller of the Currency, U.S. federally chartered banks and federal savings associations can hold reserves for stablecoin issuers. In a statement, Brian Brooks said the guidance provides banks within the federal banking system with greater regulatory certainty, enabling them to serve customers in a safe and secure manner.
The Office of the Comptroller of the Currency also stated in a letter of explanation in January that the Commonwealth Bank and Federal Savings Association could use public blockchains and stablecoins for settlements. The letter states that banks and savings associations can now run crypto nodes and utilize the associated stablecoins for “allowable payment activities.” This means that banks can use public blockchains to verify, store, record and settle payment transactions as long as they comply with existing laws. The OCC further explained that banks can use stablecoins to facilitate customer payment transactions on independent node verification networks, including issuing stablecoins and exchanging stablecoins for legal tender.
However, the OCC leadership has changed and is now facing political pressure (particularly from congressional Democrats) to roll back the “legacy policies” of Brooks and his predecessor, Joseph Otting.
In early December last year, Maxine Waters, chairman of the U.S. House of Representatives Financial Services Committee, stated in a letter to the new president that she suggested that President-elect Biden revoke or oversee all cryptocurrency-related guidance issued by the U.S. Office of the Comptroller of the Currency, that is, allowing national banks to contribute to stability. Coin issuers hold reserves and provide users with cryptocurrency custody services. Each of these suggestions would have cost Brian Brooks work. In a section on financial stability, Waters wrote that the Financial Stability Regulatory Board should publish their analysis of developments and the existing regulatory framework around digital assets and distributed ledger technology.That same month, the Society of State Bank Supervisors (CSBS) announced that it had filed a lawsuit in District Court for the District of Columbia against the Office of the Comptroller of the Currency creating a new state banking charter for nonbank companies. John W. Ryan, CSBS President and CEO, said: "To allow the OCC to create special purpose nonbank licenses would redefine the entire banking system, introduce new systemic risks, and open the door for any federal agency to act beyond its legal limits." Sets a dangerous precedent. We believe the court will share our concern and find that the OCC illegally attempted to expand its authority."While announcing the imminent launch of custody services, Bank of America also revealed a recent investment in crypto infrastructure company Securrency.
Note:The latest round of strategic financing. Bank of America also said it had been selected to manage NYDIG’s Bitcoin ETF (if subject to regulatory approval), based on the bank’s longstanding private fund servicing relationship with NYDIG.
