Cryptocurrency companies can keep paying interest-like rewards, say federal bank regulators
Cryptocurrency companies can continue to pay interest-like rewards to customers, federal regulators said Wednesday, despite warnings from banks that such programs could drain trillions of dollars in deposits from the banking system.
Federal regulators have stated that cryptocurrency companies are permitted to continue offering interest-like rewards to their customers. This decision was made despite concerns raised by banks regarding potential impacts on the banking system’s deposits. Banks had warned that such programs could lead to a substantial withdrawal of funds.
- Cryptocurrency companies can continue to pay interest-like rewards to customers.
- Federal regulators issued this statement on Wednesday.
- Banks had previously warned that these programs could drain trillions of dollars in deposits from the banking system.
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