US Crypto Exchanges To Separate Customer, Manager Funds Under Biden Plan - Coinbase
Fahad Shabbir (@FahadShabbir) Published May 19, 2022 | 02:10 AM
WASHINGTON (UrduPoint News / Sputnik - 19th May, 2022) The Biden administration plans to ask Congress to press cryptocurrency exchanges to keep their customers' money separate from their own corporate funds to avoid enmeshing of the two in the event of a crisis, cryptocurrency exchange platform Coinbase said in a report on Wednesday.
"Spurred by Coinbase's recent disclosure that customers' money would be jammed up if the company declared bankruptcy, Federal officials intend to push US lawmakers to fix the problem by insisting that a future legal framework require crypto firms keep customer assets walled off," the report said.
While separating customer and manager funds is a standard requirement among US financial firms, on the crypto side there is typically a commingling of funds.
Coinbase said the Biden administration specifically wants to bring legislation that would standardize the practice between the two industries.
Coinbase added that US federal officials were expected to push in the coming weeks for�a bill on the matter for Congress to consider, in line with the notion floated last year by the President's Working Group on Financial Markets that companies that host crypto wallets need to be closely watched.
While the Biden administration wants crypto fund manager accounts to be held separately, it was of the opinion that customer funds should be pooled to allow managers to handle customer trades together and internally, instead of putting each transaction on an individual blockchain, Coinbase said.
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From World
-
Togo lawmakers approve contested political reform
7 hours ago -
NATO must choose 'whether we indeed are allies': Zelensky
7 hours ago -
US House to vote on Ukraine, Israel, Taiwan aid package
7 hours ago -
Calls for calm after reported Israeli strike on Iran
7 hours ago -
IMF calls on EU to deepen single market integration to boost growth
7 hours ago -
Second Ecuadoran mayor killed ahead of anti-crime referendum: police
7 hours ago
-
Oil, gas drilling blocked in Alaska wilds as Biden seeks green cred
8 hours ago -
Man sets self on fire outside Trump trial
8 hours ago -
Turkey's Freedom Flotilla ready to set sail for Gaza
10 hours ago -
French teen dies from heart failure after knife attack near school
10 hours ago -
Iranians appear unfazed by Isfahan blasts
10 hours ago -
Ecuador mayor killed ahead of anti-crime referendum: police
10 hours ago