1 Meanwhile, high-yield savings accounts can offer significantly higher APYs (with the highest high-yield accounts offering somewhere between 20 and 25 times the national average). According to the Federal Deposit Insurance Corporation (“FDIC”), the national average of savings sits at approximately 0.07% APY. Each of these options, however, carry pros and cons, specifically with respect to the amount of annual percentage yield (“APY”) the financial institution is willing to offer to its customers. Today, consumers enjoy a variety of savings options for their cash holdings, ranging from traditional savings accounts offered by well-established banks to high-yield savings accounts typically offered by online banks and credit unions. What has not changed, however, is the idea behind savings, namely, a social good designed to encourage individuals to save money, earn passive income from saved money, and have access to banking services. Since its first incarnation, interest-bearing savings deposited at financial institutions has evolved as the provision of financial services has evolved over the course of centuries. The concept of “savings deposits” or yield producing instruments has existed for hundreds of years, with the first savings banks originating in Europe during the 18 th century that accepted savings deposits and paid interest on those deposits. Securities and Exchange Commission (“SEC”) and (iv) possible approaches and problems in offering such a product in a manner that complies with U.S. This chapter presents: (i) an introduction to traditional yield producing (savings) instruments (ii) the development of crypto currency (digital asset) savings or yield producing instruments (iii) the regulation of such instruments by the U.S. The failures of leading crypto lender Celsius Network (“Celsius”), and the enforcement action against BlockFi Lending (“BlockFi”) are well publicized examples of crypto currency yield producing instruments that have left countless purchasers of the instruments wishing they had held onto their pence. Unfortunately, the developers of various crypto currency yield producing instruments or savings accounts promised purchasers of the instruments crypto pounds for an investment of crypto pence. Benjamin Franklin noted in Poor’s Richard’s Almanack, “a penny saved, is a penny earned”.
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