Traditional Financial Companies and Cryptocurrency Custodians Best Positioned to Benefit from US Regulatory Changes

02/22/2023 05:20 • NFT Newsflash • 146 views

On February 22, it was reported that due to the existing license portfolio and the credibility in handling customer funds, traditional financial companies and the cryptocurrency custodians they support may be most able to take advantage of the proposed changes made by US regulators to protect digital assets.

Bloomberg: Wall Street is expected to benefit from the regulatory restructuring of cryptocurrency in the United States. Large banks may cooperate with cryptocompanies to launch services

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The recent announcement of regulatory changes aimed at protecting digital assets in the United States has given rise to considerable excitement within the cryptocurrency community. The changes, which are expected to roll out in the coming months, could have a significant impact on the way digital assets are traded and stored in the country. However, not all players in the market may be equally positioned to take advantage of these changes.

According to a report published on February 22, traditional financial companies and cryptocurrency custodians are best positioned to leverage the proposed regulatory changes. The report cites the existing license portfolio and credibility of these companies as the key factors that give them an advantage over other players in the market.

The proposed regulatory changes are aimed at creating a more stable and secure framework for the trading and storage of digital assets. This would involve the introduction of specific requirements for custodians, who would be required to adhere to strict guidelines around security, risk management, and transparency. In addition, exchanges and other platforms would be required to comply with new reporting and record-keeping standards.

The report suggests that traditional financial companies and cryptocurrency custodians are well-equipped to handle these regulatory changes, given their existing experience in handling customer funds and their familiarity with regulatory requirements. This, in turn, could position them as key players in the market, able to attract a greater share of investor funds and engage in a wider range of activities.

Overall, the report highlights the potential for traditional financial companies and cryptocurrency custodians to benefit significantly from the proposed regulatory changes. While other players in the market may also see benefits, these companies are likely to have an edge in terms of their existing infrastructure and expertise. As the regulatory changes begin to take effect, it will be interesting to see how the market evolves and which players emerge as the winners.

In summary, traditional financial companies and cryptocurrency custodians are likely to be best positioned to take advantage of proposed US regulatory changes that aim to protect digital assets. Their existing infrastructure, expertise, and credibility in handling customer funds augur well for them to be key players in the market.

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