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U.S. Credit Unions Seeking Government Approval to Hold Crypto Assets: Report

U.S. credit unions believe Bitcoin (BTC) and other crypto assets directly following an announcement by the National Credit Union Administration (NCUA).
The NCUA, which oversees over 9,500 federal credit unions in the U.S., said in a letter that state-insured credit unions could allow their members to buy, sell, and hold digital assets when they partner with third-party crypto service providers.

“The purpose of this letter is to clarify the pre-existing authority of the FICUs, the state-insured credit unions, to develop relationships with third party vendors who offer digital asset services to the members of the FICUs, if certain conditions are met.

This includes third-party services that enable FICU members to buy, sell, and hold uninsured digital assets with third-party providers outside of the FICU. “

Lance Noggle, senior director of advocacy for payments and cybersecurity for the Credit Union National Association, tells Bloomberg that credit unions ultimately want to be able to offer crypto-related products and services like banks.

Banks received the green light from the Office of the Comptroller of the Currency in 2020 to provide custody services for Cryptocurrencies to offer.

Noggle says the industry is at risk if credit unions can’t deliver the financial products and services people want, but the NCUA’s new guidance gives credit unions hope they can move forward in pursuing partnerships with crypto firms.

He then assures that his trading group will continue to work with the NCUA so that its members will eventually be able to offer BTC and other custody services for crypto assets.

“It’ll help kick-off credit unions move forward and have a little roadmap of what the regulator expects.”
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Source: Crypto News Deutsch

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