Is There Any Pressure On Banks From U.S. Authorities To Cut Ties With Crypto Companies?

From the outside, it seems banks are free to provide crypto services to their clients. So there is no problem keeping a close connection with crypto companies and supporting the crypto ecosystem. It is stated that multiple agencies make their move to discourage banks from dealing with crypto companies.

Banks are going through under pressure from the Fed (Federal Reserve) and FDIC (Federal Deposit Insurance Corporation) as well as the Office of the Comptroller of the Currency. Different strategies are used to isolate the traditional financial system from the crypto industries.

Looks like the authorities are not happy to see the crypto moves and how fast it spreads. So they are putting pressure on banks to cut ties with crypto companies. It will put a limit on cash inflow and outflow of the crypto ecosystem.

You know what you can do with crypto and how it can help to improve your finances and get closer to achieving your financial goals. But how would you feel if you cannot get into crypto with fiat currency easily and convert your crypto into fiat currency?

You will find it difficult to make your move in crypto and take advantage of the opportunity to improve your finances. Signature Bank made the decision in December 2022 to reduce its crypto services. Because of this, Binance cannot process a transaction that is less than $100,000 US dollars.

The central authority goes hard to crack down on crypto. You always hear about investors' protection and safety at the time of cracking down. But when bad actors already made the damage and investors lost money, the concerned authority goes after that entity then.

Now there is a rumor in the market that U.S regulators may ban crypto staking for retail customers. Again the little guys in crypto are in trouble. The big guys are in a good position. Anyone can support blockchain network staking crypto and get rewards. It's environment friendly and there is no harm from the so-called energy consumption perspective.

Coinbase CEO Brian Armstrong expressed his concern about the rumor of banning crypto staking services for retail customers. That would be bad if the rumor is not a rumor anymore. It is clear what is said in public and what's going on behind the scene is not the same.

You live in a free territory, and later realize you are not free. If you live in a country where crypto falls into a gray area or is banned, you think the situation is better where crypto is legal. It seems the situation is not as good as it seems due to applying extreme regulations and restrictions.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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