Cryptocurrency Archives - Page 76 of 235

The U.S. Treasury Department recently released a strategy aimed at promoting financial inclusion for Americans, notably leaving cryptocurrency on the sidelines. While the digital assets industry has long argued that crypto can provide accessible and inclusive financial solutions, the Treasury’s latest 35-page report mentions cryptocurrency only once, and not as a tool for inclusion. Instead, it highlights crypto-related risks, underscoring the department’s cautious stance on digital assets.

Crypto’s Limited Mention in Treasury’s Strategy

The Biden administration’s approach to financial inclusion, led by the U.S. Treasury Department, is built around expanding access to affordable financial products and services. Treasury Secretary Janet Yellen emphasized this commitment, stating that safe financial services play a crucial role in empowering Americans toward financial security. However, the report’s only reference to cryptocurrency came in the form of a warning, referencing a previous study on the “risks related to digital assets.”

As Vice President Kamala Harris advocates for economic inclusion on her campaign trail, her stance has shown more openness to crypto’s potential role in the economy. This nuanced difference highlights the divide within the administration over digital assets, as her approach appears to contrast with the caution expressed by the Treasury Department.

Financial Inclusion and the Role of Crypto

Crypto proponents argue that digital assets represent a low-barrier entry to finance, especially for underserved populations lacking access to traditional banking. Remittances and peer-to-peer transactions, for example, are often cited as real-world applications of crypto that can benefit communities with limited banking options. Advocates within the cryptocurrency sector suggest that blockchain technology’s decentralized nature can reduce costs and make financial services more accessible on a global scale.

Despite these arguments, organizations such as the Center for American Progress and the Brookings Institution are skeptical. They contend that crypto’s benefits for financial inclusion have been overstated, pointing to the volatility and lack of regulatory oversight as concerns that could, in fact, harm those the industry claims to help.

A Broader Political Landscape

The administration’s position on cryptocurrency is taking shape within the broader 2024 presidential election context. Both Vice President Kamala Harris and former President Donald Trump, a key contender, have voiced support for cryptocurrency in different ways. Harris has alluded to crypto’s economic potential, although her campaign hasn’t fully outlined how it would fit into her financial policy if elected. Trump, on the other hand, has openly embraced digital assets, which contrasts with his administration’s handling of crypto regulation, such as the SEC’s lawsuit against Ripple, a major crypto project, during his presidency.

The Treasury’s focus on traditional financial systems over digital assets also appears to support a more cautious, incremental approach to inclusion. While the strategy does not directly address digital currency, the choice to mention crypto only as a potential risk signals a likely continuation of regulatory caution in the near term.

Implications for the Crypto Sector

The Treasury Department’s cautious stance creates a challenging regulatory environment for crypto companies that hope to position themselves as solutions for financial inclusion. For example, firms like Ripple, which provides blockchain-based payment services, may face an uphill battle in convincing regulators of their utility for underbanked populations.

In fact, the broader cryptocurrency ecosystem may feel pressure from this strategy, as it signals a preference for traditional financial infrastructure and regulated institutions to address financial inclusion. With only a brief mention of crypto’s potential risks, the Treasury’s report sidesteps the argument that digital assets could complement conventional financial systems by offering decentralized, cost-effective alternatives.

Looking Ahead: The Future of Crypto and Inclusion

As the crypto sector continues to evolve, the lack of endorsement from the Treasury may encourage digital asset advocates to push harder for recognition as a legitimate part of the financial system. This strategy report also leaves room for future administrations to either uphold or revisit crypto’s role in financial inclusion.

Despite its omission from the U.S. Treasury’s inclusion plan, digital assets may find a foothold through other channels if enough institutional and political support coalesces around their potential. As the 2024 election unfolds, cryptocurrency’s place in the broader conversation about financial inclusion and regulatory policy is likely to become a significant point of debate, potentially shaping the sector’s future in the U.S.

For now, the U.S. Treasury Department’s strategy represents a conservative approach, favoring tested financial mechanisms while keeping the digital assets industry at a distance.

Featured Image: depositphotos @ EdZbarzhyvetsky

Disclaimer

OKX Names Standard Chartered as an Institutional Third-Party Custody Partner

Written by CryptoCurrencyNews on October 29, 2024. Posted in Cryptocurrency.

DUBAI, UAE, Oct. 29, 2024 /PRNewswire/ — OKX, a leading cryptocurrency exchange and global onchain technology company, today announced the appointment of Standard Chartered, a leading international cross-border bank connecting the world’s most dynamic markets, as a third-party crypto custodian for its global institutional business.

The custody agreement with Standard Chartered is a significant addition to OKX’s comprehensive suite of institutional services, which includes advanced trading capabilities, robust risk management tools and enhanced custody solutions. By leveraging Standard Chartered’s extensive global banking expertise and rigorous risk management framework, OKX aims to offer institutional investors a broader range of secure and reliable custody solutions.

OKX Global Chief Commercial Officer Lennix Lai said: “We selected Standard Chartered as an institutional custodian partner to enhance our offering and accelerate the integration of digital assets within the traditional financial ecosystem. Standard Chartered’s extensive global banking expertise and unwavering commitment to security aligns with our objective to provide exceptional crypto services and reinforces the confidence of our institutional clients in managing their digital assets.”

Standard Chartered Global Head of Financing & Securities Services Margaret Harwood-Jones said “We are committed to offering custodial services that meet the highest standards of safety and compliance. Serving as OKX’s third-party custodian allows us to extend our expertise into the evolving cryptocurrency sector, providing institutional investors with the assurance they require.”

This collaboration is expected to attract increased institutional participation in the digital asset market, contributing to a more mature environment for institutions globally. It aligns with the findings of a recently published OKX-commissioned research brief authored by Economist Impact, entitled “Digital assets as the new alternative for institutional investors: market dynamics, opportunities and challenges,” which highlights institutional investors’ view that digital assets are an inevitable institutional opportunity. The report also finds that 80% of traditional and crypto hedge funds utilizing digital assets employ third-party custodians, highlighting strong demand for segregation of duties related to trade execution and asset custody.

— ENDS —

For further information, please contact:
Media@okx.com

Wasim Benkhadra
Global Communications Lead, Corporate & Investment Banking (CIB)
Head of Communications, UAE, ME & Pakistan and Africa
Standard Chartered
+9714 5083221
wasim.benkhadra@sc.com

Kate Matthews
Communications Director, Europe
Standard Chartered
+44 20 7885 7899
kate.matthews@sc.com

About OKX Institutional

OKX Institutional is a global leader trusted by international firms and counterparties, and provides a powerful suite of institutional crypto trading solutions such as an on-demand OTC liquidity network, structured products and managed accounts. OKX infrastructure is built for institutional traders, with unified account systems, integration with leading custodians and low-latency APIs.

With industry leading monthly Proof-of-Reserves and trading volumes, deep liquidity, and 99.99% uptime, OKX combines top-tier security with speed and reliability. It offers access to over 700 spot trading pairs, 280+ derivatives instruments, and up to 125x leverage on leading futures contracts.

To learn more about OKX Institutional, visit: okx.com/institutions or contact institutional@okx.com to accelerate your institutional crypto trading objectives.

About Standard Chartered

We are a leading international banking group, with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

For more stories and expert opinions, please visit Insights at sc.com. Follow Standard Chartered on X, LinkedIn, Instagram and Facebook.

Disclaimer

Logo – https://www.007stockchat.com/wp-content/uploads/2024/03/OKX_Logo_Logo-1.jpg

View original content:https://www.prnewswire.co.uk/news-releases/okx-names-standard-chartered-as-an-institutional-third-party-custody-partner-302289798.html