Original sourcephemex.com
Summary
In a piece for a16z Crypto, Jito Labs' Rebecca Rettig argues that banks can remain compliant on permissionless blockchains without switching to permissioned networks. She notes that U.S. Bank Secrecy Act and sanctions laws require risk-based controls, not zero-risk infrastructure or direct control…
Key points
- Financial institutions and blockchain infrastructure teams can use this to understand the policy basis for public-chain compliance arguments and the role of privacy technology in institutional settings.
- If regulators accept risk-based controls rather than zero-risk infrastructure standards, the barrier for banks to adopt public chains will shift from technical controls to application-layer governance.
- Banks and custodians can assess feasible paths for offering services on public chains and incorporate zero-knowledge proofs into their compliance disclosure toolkit.
Editorial note
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