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Banks should trade bitcoin, US regulators believe

A group of banking regulators in the United States is trying to provide a clear path for banks and customers who want to hold bitcoin and other cryptocurrencies. Jelena McWilliams, the president of the Federal Deposit Insurance Corporation (FDIC), spoke about the topic at the Milken Institute Global Conference held days ago.

As the . agency found today, the insurance expert said at the conference that cryptocurrencies could be included in each person’s bank balances as traditional assets. It even affirms that they could begin to be used as collateral for loans.

Currently already there are a number of non-bank companies and decentralized finance platforms that offer cryptocurrency loans, like the Spanish company BitBase. It is a growing service that the official recognizes that banking institutions are missing out on by not offering it.

He only warns that, for this, it is necessary for the banking industry to define clear rules on the custody of cryptocurrencies. In this way, you could facilitate the trading of these assets. McWilliams stated, “I think we should allow banks to enter this space as long as they adequately manage and mitigate risk.”

Notes that The biggest challenge is deciding what type of capital and liquidity treatment to assign to these highly volatile assets. Once these parameters are defined, the banking industry will be able to safeguard the cryptocurrencies of its clients. This, in turn, would allow federal agents to regulate the activity.

Banks are missing out on crypto trading, McWilliams believes

During the conference, which took place in the city of Beverly Hills in California, McWilliams said that he not only intends to establish a clear picture for banks to use cryptocurrencies. Warn that investments in these assets will continue to grow outside of the banking industry if they are not joined, so the future is in adding them to your services.

Jelena McWilliams, the president of the FDIC, wants banks to add cryptocurrencies to their traditional services. Source: Jelena McWilliams /

Precisely the spokeswoman for the FDIC, who is a member of the Republican Party, said “if we do not carry this activity inside the banks, it will take place outside of them.” And add that without their contribution as intermediaries, federal regulators will not be able to control it, something you think should happen.

As . had reported in May, These statements show the result of the Union of United States Government Agencies to Regulate Cryptocurrencies. Since then, the FDIC has worked closely with the Federal Reserve and the country’s Office of Currency Control to achieve this goal.

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Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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