Key takeaways
- Bank of America is ready to enter the crypto market as soon as regulations are clarified.
- The bank would focus on regulated, non-anonymous transactions.
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U.S. banks are eager to adopt crypto for transactions if regulatory guidelines are set, Bank of America CEO Brian Moynihan said in an interview with CNBC’s Squawk Box on Tuesday.
“If the rules come into effect and make this a real thing that you can actually do business with, you’ll find that the banking system will be hit hard on the transactional side,” Moynihan said when asked if he thought that his bank was going to fail. in the crypto sector within the next one to two years, given President Donald Trump’s pro-crypto stance.
“Non-anonymous, verified transactions,” he added.
Moynihan also noted that the bank already handles most money movements digitally.
“We already move the vast majority of our money digitally. Our consumers or businesses are doing it,” he said.
When asked if he sees crypto and Bitcoin as a threat to the US dollar, Moynihan said he sees crypto as potentially another payment option alongside existing methods such as “Visa, Mastercard , debit card, Apple Pay”.
The main obstacle is the current lack of regulatory clarity, but once this is resolved, he expects the banking system to become a major player in the crypto trading space.
“I think if it becomes regulatory it’s no big deal, which wasn’t the case before. That’s the problem, you’ll see the banking system come in. We already hold hundreds of patents on blockchain,” he said.
“I think you will see the banking sector move,” he added.
US banks are being cautious when engaging with crypto companies due to regulatory uncertainties and concerns over risks associated with crypto assets.
The situation has become more complicated since the previous administration of former President Biden reportedly led a campaign to prevent banks from developing crypto-related services, commonly referred to as “Operation Choke Point 2.0.”
One of the key policies contributing to this environment was the SEC’s Staff Accounting Bulletin (SAB) 121, which required banks to classify cryptocurrencies held by customers as liabilities on their balance sheets. This rule has created obstacles for banks wanting to offer cryptocurrency custody services, discouraging many institutions from pursuing cryptocurrency-related initiatives.
As a result, many US financial institutions have either suspended or slowed down their crypto projects. Many crypto companies have chosen to leave the US market in favor of jurisdictions with clearer and more favorable regulations.
This situation is expected to change under the Trump administration. Trump pledged to repeal SAB 121 and end “Operation Choke Point 2.0,” aimed at promoting a favorable environment for U.S. crypto companies.
Neither Bitcoin nor cryptocurrency was mentioned during President Trump’s inauguration. speech, and his first day in office passed without any watch out for cryptography issues. Despite this, industry players are confident that these issues will be resolved in due time.
According to David Bailey, CEO of BTC Inc., The crypto-related executive orders (EOs) are among the first 200 EOs signed by President Trump. Trump is also expected to pardon Ross Ulbricht, the creator of Silk Road.
I had confirmation this evening that our EOs are among the top 200. I have no idea what happened, but good news is coming.
– David Bailey🇵🇷 $0.85 mm/btc is the floor (@DavidFBailey) January 21, 2025
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