Crypto SWOT: Bank of America believes more regulation could be positive for cryptocurrencies

By Kitco News / October 11, 2021 / www.kitco.com / Article Link

StrengthsOf the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Nano Dogecoin INTC, rising 50,429,343,990%.According to Bloomberg, Bank of America (BofA) has now launched research coverage of cryptocurrencies due to growing institutional interest in the sector and massive appetite among retail clients. On Bloomberg Surveillance this week, head of global research from BofA Candance Browning said, "This isn't just Bitcoin anymore, this is digital assets."US Bancorp, the fifth-biggest retail bank in the nation, is joining rivals State Street and Bank of New York Mellon in offering crypto custody services. The bank is offering crypto custody services to institutional investment managers with funds in the U.S. or the Cayman Islands, according to Bloomberg.WeaknessesOf the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Big Digital Shares BDC, down 81.47%.Central banks are becoming more concerned about cryptocurrencies, but particularly regarding stablecoins. The Bank of International Settlements, the organization that represents most of the world's central banks, published guidance on how regulators can oversee them, writes CoinDesk.According to CEO of Galaxy Digital Mike Novogratz, "a central bank-issued currency would be a disaster," reports CoinDesk. "Governments are not good at innovating, and I don't think anyone in the West wants to give up as much privacy as the Chinese are willing to give up." The article goes on to highlight the perceived risk if governments start meddling in cryptos.OpportunitiesFederal Reserve Chairman Jerome Powell said that he has no intentions of banning cryptocurrencies. While testifying before Congress, Powell was asked by lawmakers if it was the Fed's intention to ban or limit the use of digital assets, and Powell simply responded "no," according to Decrypt.An article published by Bloomberg states that, in the eyes of Bank of America(BofA), more regulation could be positive for cryptocurrencies. Once rules are established, the uncertainty over how to invest in crypto will be lifted, a strategist at the bank wrote.According to an article published by Decrypt, The U.S Department of Justice has announced a new cryptocurrency enforcement team. Attorney General Lisa Monaco stated that, "We have already made great stride in combating misuse of cryptocurrency platforms, and we've shown we won't hesitate to go after those platforms that help criminals launder or hide their criminal proceeds."ThreatsStablecoin backer Circle is under investigation by the SEC. In an article published by Bloomberg, Circle received an investigative subpoena from the SEC requesting "documents and information regarding certain of holdings, customers, programs, and operations."Brian Armstrong, CEO of the largest crypto exchange in the U.S., Coinbase, is concerned that U.S. business leaders will start quitting due to the intense scrutiny that they face. "America could be losing some of its best talent from this, and it has some parallels to what is happening to successful CEOs in China" said Brian Armstrong in article published by Bloomberg.Gary Gensler confirms that the SEC won't ban crypto, but Congress could. During his hearing at the House Committee on Financial Services, Gensler emphasized that prohibiting cryptocurrency does not fall within the SEC's mandate, stating "that would be up to Congress," reports CoinTelegraph.By Frank E. HolmesContributing tokitco.com Follow @bulldogholmesfholmes@usfunds.comwww.goldnewsletter.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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