How are we doing in the U.S. on developing crypto banking services?
Cryptocurrency is quickly being integrated into the American economy, but crypto banking services are slow to follow, at least, until now.
This may soon change, according to Morgan Stanley analysts.
Will Canny at Coindesk reports experts there are suggesting crypto bank regulations are coming sooner than many might expect.
“It was already known that regulators were working on this framework, (a Morgan Stanley report) says, but their ‘sense of urgency’ on the matter is a positive for getting new rules in place ‘sooner rather than later,’” Canny writes.
In context, Canny cites a “policy sprint” on the part of the Federal Reserve, FDIC and OCC that suggests American regulators are serious about setting ground rules for crypto banks.
“Well-crafted regulation will help to promote the adoption of crypto-assets and their related services,” said Morgan Stanley people quoted in the story.
The Morgan Stanley report also lists key services to be covered, including the following:
- facilitation of customer purchase/sales of crypto-assets
- loans collateralized by crypto-assets
- issuance and distribution of stablecoins
- activities involving the holding of crypto-assets on banks’ balance sheets
As Canny notes, all of this is good news for banks like Silvergate that deal in crypto services.
Set up in 2019 and listed on the New York Stock Exchange, Silvergate (NYSE: SI) offers commercial lending and commercial banking along with “fintech banking” services.
Recent stock activity has borne out some of the renewed interest in crypto banking services – as Silvergate rested at around $100 in September, and $150 per share in October, current share prices are up near $200.
It’s going to be hard for the bank to continue these increases, but in general, investors can look out for more promising happenings in the crypto banking. Don’t ignore these green shoots – because this part of the blockchain economy could end up driving big changes in the years to come.
