According to Brian T. Moynihan, the CEO of Bank of America, the bank is not planning on offering crypto-related products soon.
Moynihan noted that the regulatory environment would prevent the bank from entering the industry. He also stated that the bank would not be able to expand its operations in the digital space due to the obstacles that it would face.
During an interview with Yahoo Finance, Moynihan was asked about the bank's future plans regarding the use of cryptocurrencies. He said that the company would not be able to participate in the cryptocurrency industry due to the regulations that would prevent it from doing so.
"We can't do it," the CEO said. "By regulation, we're not likely allowed to interact."
Due to the various regulatory challenges that the US has to face, the country's crypto trade has become a working theme. For instance, due to the potential conflicts of interest that could arise from the issuing of specific cryptocurrencies, blockchain companies are constantly looking for ways to avoid getting caught in the middle of the SEC's actions.
Cryptocurrencies as unlawful securities
One of the most critical factors that the US government has to consider when regulating the digital asset space is the classification of cryptocurrencies and tokens as unlawful securities. In March, US President Joe Biden issued an Executive Order to help develop and implement regulations for the industry.
Senator Cynthia Lummis of Wyoming is also expected to introduce a bill that will help set up the regulations for the digital asset space.
Despite the potential regulations, Bank of America is still planning on conducting research on the cryptocurrency market. It's currently not planning on launching any products related to cryptocurrencies.
Gensler's order for platforms to inform the SEC about their practices came after the agency revealed that it would like to hear from them about their concerns. However, according to Moynihan, this process might not be as simple as it sounds. He concluded that the regulators might ask them to wait until they're ready to ask questions.
"They've mentioned 'you may have to ask us earlier than you do it – and by the best way, don't ask'," the CEO replied.
Bank of America on crypto opportunity
Despite the various difficulties that the financial industry faces, Moynihan is still confident that it can still provide its customers with the best possible service. He added that the bank's primary focus is on serving its customers.
Besides being a bank, the company has also been actively involved in developing blockchain technology. As a part of its efforts to advance blockchain technology, BofA is also working on developing a blockchain strategy.
Moynihan is still confident that Bank of America can provide its customers with the best possible service. He noted that Bank of America has about 54 million customers. In addition to serving its customers, Moynihan also said that the bank does not feel like it is missing out on anything yet when it comes to offering crypto.
The banking industry is working toward addressing the various issues that cryptocurrencies have presented as a selling point. One of these is the ability to quickly cross-border payments.
Unlike other central banks, such as BNY Mellon and Goldman Sachs, Bank of America has not taken a significant dive into the crypto industry.
Fidelity Investments is also a significant player in the space. It recently announced that it would add Bitcoin to its customers' 401k accounts.