Yesterday the Federal Reserve announced guidelines for granting Federal Reserve master account access to institutions with novel charters, which would include cryptocurrency banks, stablecoin issuers and digital asset banks more broadly. It released a draft version in March 2021, which was revised twice based on feedback.
“The new guidelines provide a consistent and transparent process to evaluate requests for Federal Reserve accounts and access to payment services in order to support a safe, inclusive, and innovative payment system,” said Vice Chair Lael Brainard.
While the crypto sector has embraced the new pathway, there was an important caveat in the Federal Reserve’s announcement. If supervisory or regulatory frameworks are still being developed for the novel activities – as is the case for crypto and stablecoins – then any Federal Reserve review will be more extensive.
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