$BTC
The US has taken a significant step forward in embracing cryptocurrency. The Federal Deposit Insurance Corporation (FDIC) will no longer reject cryptocurrency companies due to "reputational risk." This means crypto giants can now open bank accounts without fear of being shut down simply because of their involvement with Bitcoin.
The driving force behind this change is the FIRM (Financial Integrity and Regulation Management) legislation, passed by a majority vote in the US Senate (13 for, 11 against). This law aims to provide a more level playing field for cryptocurrency companies by excluding reputational risk as a factor for banks to close accounts.
In simpler terms, banks will now focus more on financial criteria rather than hearsay or rumors. This shift is expected to allow cryptocurrency companies to develop in a more normal environment, free from banking isolation.
However, it's essential to acknowledge that some individuals and groups still view cryptocurrencies with skepticism, as evident from the 11% of votes against the FIRM legislation. As the industry moves forward, it's crucial to strike a balance between innovation and regulation to ensure a secure and stable financial environment.
Law firms like The Crypto Lawyers and Ropes & Gray are already catering to the growing demand for cryptocurrency and blockchain-related legal services, offering expertise in areas such as SEC and CFTC regulations, fund formation, and tax planning.¹ ²