Banks holding Bitcoin validates digital assets, says Binance.US CEO
Binance.US CEO Catherine Coley joined us on the latest episode of The Decrypt Daily podcast, reacting to yesterday’s news that United States national banks and federal savings associations have the legal right to take custody of customers’ cryptocurrency assets such as Bitcoin.
“This was probably the most substantial news we’ve heard in the crypto space, our legal and regulatory [head] said, in the last two years,” Coley told host Matthew Aaron.
“It’s an advancement where the current traditional banking systems are validating digital assets, recognizing that they will hold them just as they have held all of your other traditional assets. And this was a huge hurdle for people to feel comfortable with digital assets.”
The United States Office of the Comptroller of the Currency (OCC), an independent bureau within the US Treasury, issued a public letter on Wednesday clarifying long-standing guidance on the holding of digital assets. The letter affirmed that cryptocurrency falls under that banner, as well, giving banks added confidence to offer crypto-related services.
While the news may strike some as unnecessary, given that cryptocurrency is designed to be held and transacted without the need for a centralized intermediary like a bank, Coley and others in the industry see the announcement as a positive step towards widespread adoption of crypto in the United States.
“I think it’s mostly about all of the different ways that we can have digital assets involved in our everyday lives. If it feels better being held at a bank, that’s great; if it feels better being held by yourself, that’s great,” she said. “For Binance.US, this is a great lead to more mainstream adoption. If banks are comfortable holding it, more people will be comfortable holding it.”
Big banks can now hold Bitcoin. Should crypto custodians worry?
Coley also spoke about the recent Bitcoin-tinged Twitter hack and Binance.US’s mission in promoting crypto acceptance in the United States. But for that you’ll need to tune in to our full interview with Catherine Coley on The Decrypt Daily.
Subscribe on iTunes and continue to be informed about the latest happenings in cryptocurrency, blockchain, and decentralized tech.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.