LA Federal Reserve United States expanding its reach Supervisory program for US banks operating in the cryptocurrency and blockchain sector.
With the announcement on August 8, the Federal Reserve Board established its innovative activities supervision programThe purpose of which is to limit certain cryptocurrency-related activities and facilitate the creation of a fair environment for banks engaged in serving the digital asset sector.
The program is an addendum to a January 27 policy statement aimed at ensuring that all Fed-supervised banks are subject to the same restrictions on cryptocurrencies.
@federal Reserve It provides more details on its program of overseeing new business for the banks it supervises: https://t.co/6MiItQwO7V
– Federal Reserve (@federalreserve) 8 August 2023
@federal Reserve It provides additional details on its program to monitor innovation in the banks it oversees: https://t.co/6MiItQwO7V
– Federal Reserve (@federalreserve) 8 August 2023
Activities regulated by the program include Custody, lending, trading, issuing or distributing cryptocurrencies including stable coins.
It is also regulated as per a letter from the board Providing banking infrastructure to digital asset companies or partnering with companies using distributed ledger technologies.
The Fed said the new program aims to balance financial innovation with appropriate risk management practices to ensure the safety and soundness of the banking system.
Registered banks participating in the program “risk based” may be submitted for review by the Fed’s board, which will consider whether the new business complies with its policies and US law.
The guidelines apply to both insured and uninsured US banks overseen by the Board.
While the program aims to provide tighter oversight of US banks, the Federal Reserve has indicated that it is not discouraging state-owned banks from severing ties with the industry, including in the digital asset sector.
Translation by Matteo Caron
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