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News News US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives
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News US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives



<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NWRlMmQtMzRjNC03ZTllLWEzNTItMWMzYjJlZTQzYjNh.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDMvMDE5NWRlMmQtMzRjNC03ZTllLWEzNTItMWMzYjJlZTQzYjNh.jpg" alt="US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives"></p><p>The Federal Deposit Insurance Corporation (FDIC) <a data-ct-non-breakable="null" href="https://www.fdic.gov/news/financial-institution-letters/2025/fdic-clarifies-process-banks-engage-crypto-related" rel="nofollow noopener" target="_blank" text="null" title="https://www.fdic.gov/news/financial-institution-letters/2025/fdic-clarifies-process-banks-engage-crypto-related">said</a> in a March 28 letter that institutions under its oversight, including banks, can now engage in crypto-related activities without prior approval. The announcement comes as the Commodity Futures Trading Commission (CFTC) <a data-ct-non-breakable="null" href="https://www.cftc.gov/PressRoom/PressReleases/9060-25" rel="null" target="null" text="null" title="https://www.cftc.gov/PressRoom/PressReleases/9060-25">announced</a> that digital asset derivatives wouldn&rsquo;t be treated differently than any other derivatives.<p>The FDIC letter rescinds a previous instruction under former US President Joe Biden&rsquo;s administration that <a data-ct-non-breakable="null" href="https://www.fdic.gov/news/financial-institution-letters/2022/fil22016.html" rel="null" target="null" text="null" title="null">required</a> institutions to notify the agency before engaging in crypto-related activities. According to the FDIC&rsquo;s definition:</p><blockquote>&rdquo;Crypto-related activities include, but are not limited to, acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending.&rdquo;</blockquote><p>FDIC-supervised institutions should consider associated risks when engaging in crypto-related activities, it said. These risks include market and liquidity risks, operational and cybersecurity risks, consumer protection requirements, and Anti-Money Laundering requirements.</p><iframe width="100%" height="315" src="https://www.youtube.com/embed/IMvhlpbircU?start=" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen loading="lazy"></iframe><p>On March 25, the FDIC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fdic-moves-eradicate-reputational-risk-category-bank-exams" rel="null" target="null" text="null" title="null">eliminated the &ldquo;reputational risk&rdquo; category </a>from bank exams, opening a path for banks to work with digital assets. Reputational risk is a term that underscores the dangers banks face when engaging with certain industries. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fdic-transparency-operation-chokepoint-coinbase-clo" rel="null" target="null" text="null" title="null"><em><strong>FDIC resists transparency on Operation Chokepoint 2.0 &mdash; Coinbase CLO</strong></em></a></p><h2>Digital asset derivatives won&rsquo;t be treated differently &mdash; CFTC</h2><p>While the US crypto derivatives market had been a gray zone due to regulatory uncertainty, that has been changing. On March 28, the CFTC <a data-ct-non-breakable="null" href="https://www.cftc.gov/PressRoom/PressReleases/9060-25" rel="null" target="null" text="null" title="null">withdrew</a> a staff advisory letter to ensure that digital asset derivatives &mdash; a type of trading product &mdash; will not be treated differently from other types of derivatives. The revision is &ldquo;effective immediately.&rdquo;</p><p>The change in tone from the CFTC and FDIC follows a new environment for crypto firms under US President Donald Trump&rsquo;s administration. Trump has vowed to make the US &ldquo;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/trump-implement-bitcoin-strategic-reserve-elected-president" rel="null" target="null" text="null" title="null">the crypto capital of the planet</a>.&rdquo; <br><br>Crypto firms are shifting strategies to align with the easing regulatory climate. On March 10, Coinbase announced the offer of 24/7 Bitcoin (<a data-ct-non-breakable="null" href="/bitcoin-price" rel="null" target="null" text="null" title="/bitcoin-price">BTC</a>) and Ether (<a data-ct-non-breakable="null" href="/ethereum-price" rel="null" target="null" text="null" title="/ethereum-price">ETH</a>) futures. In addition, the company is reportedly <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-talks-to-buy-derivatives-exchange-deribit-report" rel="null" target="null" text="null" title="https://cointelegraph.com/news/coinbase-talks-to-buy-derivatives-exchange-deribit-report">planning to acquire Derebit</a>, a crypto derivatives exchange.</p><p>Kraken, another US-based cryptocurrency exchange, has also made moves in the derivatives market. On March 20, it announced <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/kraken-reportedly-nears-billion-dollar-deal-allowing-futures-trading-us-report" rel="null" target="null" text="null" title="https://cointelegraph.com/news/kraken-reportedly-nears-billion-dollar-deal-allowing-futures-trading-us-report">the acquisition of NinjaTrader</a>, which would allow the exchange to offer crypto futures and derivatives in the United States.</p><p><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/trumps-crypto-insider-trading-conflict-of-interest-concerns/" rel="null" target="null" text="null" title="null"><em><strong>Trump&rsquo;s crypto ventures raise conflict of interest, insider trading questions</strong></em></a></p><template data-name="subscription_form" data-type="consulting_newsletter" label="Subscription Form: Consulting Newsletter"></template></p>
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