Federal Reserve Allowing Cryptocurrency Banks Access To Central Banking System

The Federal Reserve U.S Board has finalized tiered guidelines for granting Federal Reserve accounts, with Wyoming’s crypto banks likely to fall under the most scrutiny.

Federal Reserve issues guidelines for issuing master accounts to crypto banks

According to a press release, the U.S. FED might provide crypto banks and other entities with access to Federal Reserve accounts and payment services. Following two proposals from the Federal Reserve Board in May 2021 and March 2022, the institution has arrived at final guidelines for these purposes.

Guidelines were first proposed in May 2021, with a supplemental proposal released in March, and the final guidelines, which come into force after their publication in The Federal Register, are “substantially similar” to them. 

“Institutions that engage in novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks would undergo a more extensive review.”

The statement wrote

As mentioned, the guidelines will facilitate access to the legacy financial system, via Federal Reserve accounts, and payment methods, such as cash, checks, wire transfer, and others, to crypto banks and other “novel” entities.

However, the framework was improved “to ensure more comparable treatment amongst non-federally-insured institutions chartered under state and federal law,” the document added. The most thorough examination will be given to non-federally insured banks that are chartered in accordance with federal law but lack a holding company under the control of the Federal Reserve. To use the international payment systems, financial institutions require a Federal Reserve account.

Fed Governor Michelle Bowman claimed that these guidelines will provide entities requesting access to the financial institution’s services with clarity. Thus, crypto banks and novel entities will be able to better understand the process to gain access to the U.S. central bank system at an institutional level.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News