Bank of America CEO Brian T. Moynihan recently stated that the corporation will not be selling cryptocurrency-related services in the foreseeable future. Despite acknowledging the importance of digital payments in today’s economy, he claims that regulatory barriers prohibit the bank from expanding further into the sector.
Moynihan was asked about what Bank of America “may or may not” do with cryptocurrencies in the future when speaking with Yahoo Finance at the World Economic Forum on Saturday.
The CEO said, “We can’t do it.” “By regulation, we’re not really allowed to engage.”
Regulatory difficulties have become a recurring subject in the cryptocurrency business in the United States. Whether it’s because of worries about the issue of a given token (ex. Ripple) or the lending practices of certain platforms. Blockchain companies throughout the world are wary of when the Securities and Exchange Commission (SEC) may move next.
Things would be a lot easier if the private sector knew which cryptocurrencies and tokens are considered unlawful securities, but that isn’t obvious yet. That’s why, in March, US President Joe Biden signed an executive order to help unify regulatory framework research and development in the digital asset space.
Senator Cynthia Lummis is also planning to introduce a bill that will neatly organize the regulatory classifications of digital assets as well as the jurisdiction of federal agencies. Bank of America, on the other hand, will limit itself to creating research reports on the crypto market until such legislation is passed. For the time being, products such as cryptocurrency bank accounts are off the table.
Gary Gensler, the chairman of the Securities and Exchange Commission, has previously encouraged crypto trading platforms to engage with the commission about their operations in order to reach an agreement. However, according to Moynihan, it isn’t that simple.
“They’ve said, ‘you have to ask us before you do it—and by the way, don’t ask’,” explained the CEO.
Considering the bank’s legal issues, Moynihan is unconcerned about missing out on the “next big thing.” Rather, his company is primarily concerned with assisting people in achieving financial success through sound investing strategies.
Despite this, the bank has already filed hundreds of blockchain-related patents. Last October, a market analysis suggested that the crypto industry had grown too big to ignore, while another claimed that Solana might become the Visa of crypto.
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