According to four industry managers, the US major banks are planning to encourage regulatory signals to expand to the encryption market.
These Wall Street giants, formerly limited to participating in encryption activities due to strict regulations, are now preparing to discover this section through experimental programs, partnerships or limited cryptocurrency trade services.
However, executives, who prefer to stay anonymous, pointed out that the largest lenders are taking care of the first person to put themselves in excessive encryption space and have the risk of violating violations.
Managers added that a large company should successfully expand its encryption operation without dealing with regulatory issues, others follow the case quickly, start small -scale experimental projects, and evaluate more job opportunities in the digital asset market.
Jimmy Damon, CEO of the United States’s largest bank, JPMorgan Chase, decided to arrest – store encrypted assets for the customer – or significant expansion even if the regulations are ease.
“When I look at the world of bitcoin, the system leverage, system abuse, money laundering problems, smuggling, I am not in favor of it,” Damon told investors last week.
“We want to allow you to buy it, we don’t want to customize it … I don’t think you have to smoke, but I defend your cigarette right. I defend your right to buy bitcoin.”
The US President Donald Trump promised to become the first “President of encryption” before he takes his position. Since then, he has attracted the industry’s elite at the White House, promising to reinforce the approval of digital assets and said his goal was to create a strategic bitcoin reserve.
While the signs are welcomed, banks are looking for clearer instructions than the government, and more than half of industry managers said what they can do in encryption.
“Changes in the traditional lenders are encouraging, but they are still closer to it with caution and regulatory changes as an opportunity to participate, not a free pass,” said Dario de Martino, A & O Shearman M & A.
Bankers and managers said custody jobs are promising for storing and managing encryption assets, but have thin margins and potentially have high risks.
Resources said most banks are likely to enter custody jobs through partnerships with existing encryption companies.
Charles Schwab CEO Rick Worster told Reuters earlier this month that traffic lights are “very green” blinking from financial regulators so that large firms could grow in encryption. He said the signals have strengthened the Shob programs to provide encryption transactions within a year.
The new regulators under Trump have also shown encrypted policies with the bank. The US Currency Currency Office paved the way for lenders to carry out some encryption activities, such as custody, some stablecoin activities and participation in distributed networks.
The Securities and Stock Exchange also reduced previous accounting guidance, which made banks expensive for encryption.
Bank of America can launch Stablecoins, its CEO Brian Moynihan said earlier this year, and the US banking industry has accepted encrypted currencies for payments if allowed to regulate regulations.
Meanwhile, Morgan Stanley wants to work with the regulators to see how it can be an intermediary for encryption transactions. One source said the loan is also exploring to add encryption to its e -commerce platform.
Another bank source said some major banks are also investigating a joint stablecoin and conversations are in the early stages.
Big banks are looking for greater transparency about the rules and monitoring of washing before diving deeper into cryptography. They also ask continuous guidelines throughout banking and market regulators before launching new jobs in digital assets, whose values are unstable.
Currently, banks weigh their encryption and run small -scale experimental programs.
“While a very improved environment has been improved, banks will continue to be concerned about anti -money washing and regulatory adaptation,” said Matthew Beben, head of the World Financial Services Group at the King & Spalding Law Institute.
Landscape
One banking resource said that banks want to understand whether they can participate in encryption loans or allow them to be marketed for digital assets.
Traditional banking rules are very well defined, and complete clarity of what a bank is allowed to do and what is outside their scope is similar to the defined guidelines for digital assets.
Two bank sources said that the Crypto Working Group under David Sachs, Crypto Cypto’s encryption, has no representative of bank regulators, which should be modified if large banks are permitted.
