Bitcoin Banking Deal – Meaning Is Explained By Caitlin Long
It was already reported a few days ago that banks can hold crypto.
A that a top US banking regulator said that national banks can provide custody and safekeeping services for cryptos such as Bitcoin.
In a new letter, the Office of the Comptroller of the Currency (OCC) said that banks “may offer different methods of providing cryptocurrency custody services, depending on their expertise, risk appetite, and business models”.
Incredibly bullish news.
Also defeats the entire purpose of holding Bitcoin. https://t.co/da5TrN8DYN
— The Wolf Of All Streets (@scottmelker) July 23, 2020
Caitlin Long addresses the importance of this move
Avanti Financial Group founder & CEO Caitlin Long said that the latest crypto and banking deal that we mentioned above has implications that are far more reaching than most in the crypto industry understand.
During an extremely exciting episode of The Pomp Podcast, she highlighted the importance of this deal.
“It’s a big deal and it’s a bigger deal than most folks in the crypto industry understand… This announcement yesterday or two days ago now absolutely changes everything. As of two days ago, national banks can custody digital assets and it is what it is. They do not need to go through a special process unless this is a material part of their business,” she said as quoted by the Daily Hodl.
She explained that this announcement would apply to national and state banks even if they were not mentioned in the letter.
“Only a relatively small fraction of the number of banks in this country are regulated by the OCC. The OCC regulates national banks and then there are 50 state regulators that regulate state banks. At the end of the day, they are not different,” Long said.
She continued and said that “There is maybe a perception that a national bank has an advantage just because it is national, but here is the difference. State banks have the exact same master account at the Federal Reserve that a national bank has. They can do the same things and state member banks by law can do everything that a national bank can do.”
She explained that the crypto companies will be negatively affected by all this. We recommend that you check out the reasons and her explanation in the video above.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.