The US Commodity Futures Trading Commission (CFTC) and the Federal Deposit Insurance Corporation (FDIC) Revked Crypto-Restructed Restrictions that Wiye Banks During Former President JO BIDENSIS Administration. The FDIC Has Announced that Financial Institutes Under its oversight no longer need prior approval to dabble in Crypto-Related Activities. The CFTC, on the other hand, stated that crypto derivatives will be registered the same way other derivative products are registered in the us. Through these developments, the US authorities aim to encourage traditional financial institutes to explore crypto use- Cases.
Under President Donald Trump, The US is Taking a Pro-Crypto Approach. The US sec has formed a special crypto task force to draft detailed regulations to govern the web3 industry. Additional, the federal government is actively working to bridge Traditional Financial Systems with the evolving world of cryptocurrencies.
Undersrstanding FDIC’s Announcement
The FDIC describes itself as an independent government-backed agency established to promote the Financial Stability of the Us Through Deposit Insurance and Consumer Protection Initiatives.
On March 28, The Agency Announced that Banks Superstvised by the FDIC Can Work With Crypto and Digital Assets, as Long as they properly manage risks and adhere to existing regulations.
Essentially, The Agency has given a green light to the banks to offer crypto custodian services, maintain stablecoin reserves, participate in Blockchain-Based Settlement Systems, and ISSUE DIGITAL Assets.
“FDIC-Supervised Institutes May Engage In Permissible Crypto-Related Activities with Receiving Prior FDIC APPROVAL. Associated Risks-Including, but not limited to, market and liquidity risk; Operational and Cybery Risks; Said in its statement.
Acting FDIC Chairman Travis Hill Had First Spoke About Making these Regulatory Changes in February. At the time, hill had presented a 790-page document featuring letters from the US Banking Sector-Urging for an ease in these restrictions.
This development is expected to help us banks explore the crypto industry – that currently stands at the Valuation of $ 2.7 trillion (roughly Rs. 2,31,17,305 Crore).
Here’s what the cftc announced
The CFTC is also a government agency that governs the us derivatives markets. The agency is responsible for protecting investors against manipulation and scams.
Over the weekend, the CFTC Clarified that digital asset derivatives will be legally treated the same as futures, options, and swaps. Derivatives are final tools that “derive” their value from underlaying assets like stocks, bonds, and commodities.
In its announsement, the cftc noted that its division of “clearing and risk” Products. “
This implies that the cftc will align crypto derivatives in accordance with its own policies to mainTain fare markets, Encourage Participation, and Conduct Regular Risk Assessments.
Us’ Crypto Roadmap Under Trump
These fresh developments follow the first crypto summit hosted by the white house on March 7. Compromising on legal requirements.
Prior to the Crypto Summit, President Trump Created A Strategic Bitcoin Reserve as Well as a Crypto Stockpile in the Us. As per his executive order, bitcoin and altcoins seized by federal agencies during investigations will be put into these reserves as long-term holdings.
As the 47th President of the US, Donald Trump Promised to Transform the Us to the Crypto Capital of the Planet during his Campaigning Days. Following His Victory in the Elections, The Secent Cases Against Crypto Firms that was left under the Biden Administration.
The crypto task force has been instructed by the president to submit a first draft of their proposed crypto guidelines by august this year.