Fed readies guidelines for digital asset banks master accounts
The US Reserve Bank announced that it has finalized the guidelines for granting federal reserve accounts and financial services to financial enterprises providing new financial services and institutions with new regulations (including digital asset banks).
The Federal Reserve meeting said in a press release that the guidelines would create a set of fully transparent, risk-based and consistent influencing factors to review requests for Federal Reserve conference services
The version number adds that the guideline is classified according to the total number of financial due diligence and reviews conducted by the reserve bank on different institutions with different risk levels.
"Institutions engaged in new activities and those whose governments are still formulating appropriate regulatory and regulatory structures will be subject to wider scrutiny," the announcement said.
Lael Brainard, deputy secretary of the Federal Reserve, said that the guide is committed to making the payment system optimized, inclusive and innovative. The proposal will take effect after it is published in the Federal Register. However, according to a statement by Federal Reserve governor Michelle W. Bowman, the guidelines are only the first step in the whole process of full transparent review. She added that the entity line applying for entering the Federal Reserve's meeting account and providing services cannot expect the whole process of review to be conducted in an accelerated time.
The guide was first proposed in May 2021 and a filling proposal was given in March 2022. The Fed meeting emphasized that the final proposal and supplementary proposal at this stage are basically similar to the first proposal
According to the text of the proposal, the Federation of Federal Reserve meetings has always established it on the premise of risk control and mitigation. This risk includes the risk of reasonable implementation of the reserve bank, payment platform, financial system and fiscal policy.
The Federal Reserve meeting is finally ready to recognize the digital assets of banks
Digital asset banks have long foreseen these guiding principles, and they have been trying to speed up the review process to obtain access restrictions on the master account of the intermediary bank. As early as June, the shareholders' meeting of the Federal Reserve Bank and the Federal Reserve Bank of Kansas City were sued by the digital asset bank custodia Bank of Wyoming
Custodia fabricated a lie that it took 19 months for the Federal Reserve meeting to review its application, which exceeded the response time limit stipulated by law. The bank also claimed that because of the delay, the bank suffered huge financial losses and was unable to provide new services to customers
In addition, the guide is not the only policy and regulation dedicated to responding to the Fed's approach to digital asset banking. The responsible financial innovation act proposed by congressmen Cynthia Loomis (r-wy) and D-NY will require the Federal Reserve meeting to reply to the master account application.