Yesterday, three Republican members of the House Committee on Financial Services sent a letter to the Chair of the U.S. Federal Reserve (Fed), complaining about two regulatory letters issued earlier this month. These Fed letters include requiring State banks to get a no action letter before proceeding to get involved in stablecoins, and the Novel Activities Supervision Program which involves heightened Fed engagement with banks for DLT, tokenization of securities and crypto.
“We are concerned that these actions are being taken to subvert progress made by Congress to establish a payment stablecoin regulatory regime,” said the letter signed by Committee Chair Patrick McHenry and the Chairs of two subcommittees. “Moreover, if these letters are left in place, they will undoubtedly deter financial institutions from participating in the digital asset ecosystem.”
Additionally, the Representatives assert that the Fed has no intention of authorizing any activities related to public permissionless blockchains based on a footnote in one of the Fed letters.
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