January 27, 2023
Federal Reserve Board points coverage assertion to advertise a stage enjoying area for all banks with a federal supervisor, no matter deposit insurance coverage standing
For launch at 11:30 a.m. EST
The Federal Reserve Board on Friday issued a coverage assertion to advertise a stage enjoying area for all banks with a federal supervisor, no matter deposit insurance coverage standing. The assertion makes clear that uninsured and insured banks supervised by the Board can be topic to the identical limitations on actions, together with novel banking actions, comparable to crypto-asset-related actions.
The assertion additionally makes clear that uninsured and insured banks supervised by the Board can be topic to the restrictions on sure actions imposed on nationwide banks, that are overseen by the Workplace of the Comptroller of the Forex. The equal therapy will promote a stage enjoying area and restrict regulatory arbitrage.
As well as, the assertion reiterates that banks should each be sure that the actions they have interaction in are allowed beneath the legislation, and conduct their enterprise in a protected and sound method. For example, a financial institution ought to have in place danger administration processes, inner controls, and data techniques which can be applicable and enough for the character, scope, and dangers of its actions.
Lately, the Board has obtained quite a few inquiries, notifications, and proposals from banks relating to potential engagement in novel and unprecedented actions, together with these involving crypto-assets. In response, the Board’s assertion specifies the way it will consider such inquiries, per longstanding observe. Immediately’s motion wouldn’t prohibit a state member financial institution, or potential applicant, from offering safekeeping providers, in a custodial capability, for crypto-assets if performed in a protected and sound method and in compliance with client, anti-money laundering, and anti-terrorist financing legal guidelines.
The assertion is efficient upon publication within the Federal Register.
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January 27, 2023