US Rules Bank Blockchain Securities Don ’t Need Extra Capital #shorts

U .S. federal regulators have announced that traditional banks will not be required to hold additional capital as a safeguard against potential losses when dealing with blockchain-based securities. This decision applies to digital representations of financial instruments , such as bonds or stocks, that are issued or transferred using distributed ledger technology. Regulators characterized their existing framework as technology neutral, asserting that the underlying infrastructure used to record a transaction does not inherently alter the risk profile of the asset itself. By maintaining current capital requirements, officials aim to provide a more predictable regulatory environment for financial institutions looking to integrate blockchain into their operations . The guidance suggests that as long as the securities comply with existing financial standards, they will be treated identically to their traditional counterparts. This move is expected to encourage broader adoption of digital asset technology within the regulated banking sector, as firms can now explore these innovations without facing the significant financial burden of increased reserve mandates.

Source: Reuters
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