USA: Credit unions bank on sentiment to seek approval to hold crypto-assets

Bloomberg, in its latest report, has revealed that credit unions are seeking approval to hold crypto-assets directly.

The development follows last week’s announcement by the National Credit Union Administration (NCUA) to allow federally insured credit unions (FICUs) to partner with third-party digital asset service providers.

Highlighting certain conditions, the letter specified,

“This includes third-party provided services to allow FICU members to buy, sell, and hold uninsured digital assets with the third-party provider outside of the FICU. “

Ann Kossachev, Vice President of Regulatory Affairs for the National Association of Federally-Insured Credit Unions, noted in the report that her trade group is looking for explicit approval to offer cryptocurrency custody services.

Lance Noggle, Senior Director of Advocacy for Payments and Cybersecurity at the Credit Union National Association also commented that the letter confirms that existing laws allow third-party partnerships with regard to crypto.

Having said that, financial advisors and wealth managers have been embracing crypto to provide broader diversification to investors. This is true not only in the U.S, but in several countries.

Sentiments around crypto-adoption

Recent reports have also revealed that Senator Cynthia Lummis and Senator Pat Toomey hold Bitcoin and crypto-based products as members of the Senate Banking Committee.

Another Twitter exchange between Cardi B and tech billionaire Jack Dorsey was an indication of the current sentiments in the industry. In fact, Dorsey believes that Bitcoin will soon replace the U.S dollar.

Apart from BTC gaining dollar status, in the context of countries embracing CBDCs, Binance CEO Changpeng Zhao had recently commented,

“I still believe in the infinite potential of crypto, and having an additional option is usually better than not.”

What’s happening in India?

Meanwhile, on the other side of the globe, the Indian crypto-industry is aiming for a dual license regime, local reports have revealed. This essentially means that different types of crypto-exchanges and wallets may seek a hybrid licensing regime in India.

In the meantime, a petition before the Delhi High Court (HC) is seeking to declare derivatives trading in cryptocurrency without statutory approvals illegal.

It is worth noting that India is on the verge of putting out a regulatory framework for crypto-assets in the country. However, it is unlikely that the country will come up with legislation this month. In fact, there are rumors of an ordinance being formulated on the subject next year.