US Federal Reserve Requires Banks to Obtain Approval Before Conducting Stablecoin-Related Activities

US Federal Reserve Requires Banks to Obtain Approval Before Conducting Stablecoin-Related Activities

The US Federal Reserve has started a new program to supervise novel activities in the banks it oversees. The program will focus on novel activities related to crypto-assets, distributed ledger technology (DLT), and complex, technology-driven partnerships with nonbanks to deliver financial services to customers.

In addition, the US central bank also provided additional information on the process for a state bank supervised by the Federal Reserve to follow before engaging in certain dollar token or stablecoin activity. According to a statement, national banks are allowed to use distributed ledger technology or similar technologies to conduct payments activities as principal, including by issuing, holding, or transacting in dollar tokens, but must demonstrate that they have had controls to conduct the activity in a safe and sound manner, and obtain approval from the supervisors.

 

TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.

Source

Stablecoins

Policy and Regulation

Related News
Wall Street back-office giant DTCC mulls stablecoin integration: report Wall Street back-office giant DTCC mulls stablecoin integration: report
Crypto industry cheers progress in 'historic' stablecoin legislation as Senate advances GENIUS Act Crypto industry cheers progress in 'historic' stablecoin legislation as Senate advances GENIUS Act
Circle secures in-principle approval to operate as money services provider in Abu Dhabi Circle secures in-principle approval to operate as money services provider in Abu Dhabi
Mastercard moves to integrate stablecoins into global payments network Mastercard moves to integrate stablecoins into global payments network
Citigroup predicts stablecoin supply could hit $3.7 trillion by 2030 Citigroup predicts stablecoin supply could hit $3.7 trillion by 2030
Latest News More More
1 Day Ago Ethereum community plans onchain ‘time capsule’ to mark 10th anniversary of network’s genesis block
6 Days Ago Circle's post-IPO stock surge pushes market cap near Coinbase and USDC
June 20 Kraken offers bitcoin ‘staking’ yield via Babylon without wrapping or lending
June 17 Trump makes over $57 million from WLFI sales, Truth Social files for Bitcoin and Ethereum combo ETF, and more
June 13 XRP Ledger adopts USDC one week after Circle goes public
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open