The Federal Deposit Insurance Corporation (FDIC) declared in a letter of March 28 that institutions under its supervision, including banks, could now engage in activities related to crypto without prior approval. The announcement comes as the Commodity Futures Trading Commission (CFTC) announced that digital asset derivatives would not be treated differently from any other derivative.
The letter from the FDIC cancels a previous investigation under the administration of former American president Joe Biden who demanded that the institutions inform the agency before engaging in activities related to the crypto. According to the definition of the FDIC:
“Crypto-related activities include, but without limiting themselves, acting as crypto-actor guards; Maintain Stablecoin reserves; Take crypto assets and other digital assets; acting as market manufacturers or exchange or redemption agents; Participation in blockchain colony activities and discovery or retirement activities.
Institutions supervised by the FDIC should take into account the associated risks when they engage in activities related to cryptography, he said. These risks include market and liquidity risks, operational and cybersecurity risks, consumer protection requirements and money laundering control requirements.
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On March 25, the FDIC eliminated the “reputation risk” category of bank exams, opening a path for banks to work with digital assets. The risk of reputation is a term that highlights the dangers that banks face when faced with certain industries.
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Digital asset derivatives will not be treated differently – CFTC
While the American Crypto derivative market had been a gray area due to regulatory uncertainty, this has changed. On March 28, the CFTC removed an advisory letter from staff to ensure that digital asset derivatives – a type of trading product – will not be treated differently from other types of derivatives. The revision is “in force immediately”.
The change in tone of the CFTC and the FDICC follows a new environment for cryptographic companies under the administration of American president Donald Trump. Trump promised to make the United States “the cryptographic capital of the planet”.
Cryptographic companies change strategies to align with the regulatory climate of softening. On March 10, Coinbase announced the offer of Bitcoin (BTC) and Ether (ETH) 24/7. In addition, the company would have planned to acquire Derebit, an exchange of Crypto derivatives.
Kraken, another exchange of cryptocurrency based in the United States, has also made movements on the derivative market. On March 20, he announced the acquisition of Ninjatrader, which would allow the exchange to offer crypto future and derivatives in the United States.
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