The recent clarity about the custody of digital assets by the United States Office for the Currency Controller (OCC) is likely to affect institutional investors the mostAccording to Hong Fang, CEO of OKCoin.
“Institutional investors may have the greatest impact,” Fang told Cointelegraph.
“Retail investors have a much wider range of options (and preferences). I hope more banks are increasingly open to cryptocurrencies, with potentially better banking channels, more public awareness, and more regulatory clarity. Finally, a better user experience wins.”
OCC ensures clarity
On July 22, the OCC cleared an old gray regulatory area around cryptocurrency storage. As a result, nationwide licensed banks now know they can hold cryptocurrencies.
“The OCC ruling is definitely positive news for the young cryptocurrency industry as crypto assets are now considered a legitimate asset class for banks.”Fang said. “The OCC has reached an important milestone that enables traditional banks to provide cryptocurrency custody services, strengthening the entire financial system and expanding financial inclusion.”
Fang added that the clarification will allow the crypto industry to expand further.
Will all banks offer crypto custody in the future?
Given the clarity of the OCC combined with the growth of the cryptocurrency and blockchain industry over the years, logic could increasingly involve banks. “Banks will continue to offer products and services that their customers want,” said Fang. “Therefore, the offer of crypto custody depends on each bank’s target market and the widespread adoption of cryptocurrencies.”he added.
The cryptocurrency space is also home to several companies targeting digital asset solutions, including several U.S. institutions separate from the banking sector, Fang said, adding his interest to see how everything in the industry works in the coming days.