According to a new research note published by Morgan Stanley last week, regulations concerning the crypto banking sector will be coming sooner than expected. The report says that while it is known that regulators were working on a framework, a “sense of urgency” is pushing the new rules “sooner rather than later.”
The Morgan Stanley note comes after a November 23 joint statement from the Federal Reserve, Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC), outlining a “policy-sprint” to implement a set of rules for crypto service providers.
A positive for banks such as Silvergate and Signature, the Morgan Stanley researchers said:
“Well-crafted regulation will help to promote the adoption of crypto-assets and their related services.”
The banking giant is holding some reservations and warns policy makers for moving too fast to “implement measures that inadvertently inhibit adoption of cryptocurrencies,” adding that:
“Regulators could still in theory adopt a highly restrictive stance on crypto-related services (or prohibit them altogether) that severely inhibit their growth.”
Regulators will “assess potential capital and liquidity standards for banks to adhere to when providing crypto-related services,” the analysts wrote. The new framework will include “custody; facilitation of customer purchase/sales of crypto-assets; loans collateralized by crypto-assets,” according to the research paper.
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Source: Igaming
