The new Federal Reserve Program adds extra measures to its initial January policy statement. The US Federal Reserve is expanding its supervision program to watch over American banks that work with cryptocurrencies and blockchain technology.
On August 8, the Federal Reserve Board introduced the Novel Activities Supervision Program. Its goal is to control specific crypto-related actions and create a fairer environment for banks that serve the digital asset industry.
This program adds to the Board’s previous policy from January 27. The goal of both efforts is to make sure all banks overseen by the Federal Reserve follow the same rules regarding cryptocurrencies.
@federalreserve provides additional information on its program to supervise novel activities in the banks it oversees: https://t.co/6MiItQwO7V
— Federal Reserve (@federalreserve) August 8, 2023
The program controls various activities, like holding, lending, trading, making, or sharing cryptocurrencies, including stablecoins. It also oversees giving banking services to digital asset companies and collaborating with businesses that use special technologies for keeping records.
The Federal Reserve’s aim with this new program is to find a good balance between coming up with new financial ideas and making sure they’re safe. This helps keep the banking system secure and strong.
Banks that join the “risk-based” program might be checked by the Fed Board. They’ll make sure the new activities follow their rules and the laws of the United States. These rules are for all banks in the U.S., whether they’re insured or not.
Even though the program makes the rules tougher for U.S. banks, the Federal Reserve is not saying state banks should stop working with industries like digital assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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