US National Credit Cooperative Authority (NCUA) announced on Thursday that Federal Insurance Credit Cooperatives (FICU) can work with third-party digital asset service providers.
“This includes promoting the relationship between members and third parties, allowing FICU members to purchase, sell and hold a variety of unsupported digital assets from third-party providers other than FICU,” according to NCUA’s statement. NCUA is a US regulatory agency in regulatory credit cooperatives, equivalent to the corresponding mechanism of monetary supervision (OCC) of the National Bank.
NCUA said it wants to clarify the existing authority owned when FICU has a relationship with a third-party digital asset provider. NCUA said that with the development of digital assets and technologies, further guidance may require further guidance, the association will continue to study and solve problems.
NCUA Vice President Kyle Hauptman said that the guide is the result of two things happening in the market.
Hauptman told COINDESK: “Credit Cooperatives have been paying attention to cash-endless efforts to encrypting currency exchanges, many people prefer to use their major financial institutions for the first time involving encrypted currency investment.” Today’s guidelines help solve these two problems, and Providing new income sources for the trial of the credit cooperatives. Financial services have been ‘adaptation or dying’, I don’t want credit cooperatives to take the blockbustervideo road, because our regulatory agencies have stopped innovation. “
NCUA added that federal credit cooperatives may continue to act as founders and gather their members with third-party service providers (including services related to digital assets).
In July, NCUA issued an information request (RFI) after the three board members of the board. These requests inquiry distributed book technology (DLT) and decentralized financial (DEFI) may affect the credit cooperative system, as well as NCUA’s regulatory entities to interact with these technologies and other encryption related tools.