WASHINGTON, Aug 18 (Reuters Breakingviews) - Cryptocurrency ventures can divide and conquer Washington’s regulatory fiefdoms. The U.S. Federal Reserve staked out its turf this week, telling lenders to notify it if they offer services for bitcoin and its ilk. Other agencies are also wrestling to oversee the $1 trillion market. The scrap provides an opportunity for some industry participants, but it hurts token owners.
The central bank’s move is aimed at bringing more crypto activities under its purview. Because of murky rules or outright prohibitions, such as traditional banks being banned from directly trading digital assets, lenders have been wary of wading too far into the wild market.
The Fed’s supervisory letter gives banks the green light to go further, with guardrails. If they have adequate risk management and controls in place, it looks like the Fed won’t stand in the way.
The decision flies in the face of other rules. For example, a Securities and Exchange Commission...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...