The U.S. Federal Reserve confirms guidelines for crypto banks

The U.S. Federal Reserve Board has concluded tiered guidelines for granting Federal Reserve accounts, with Wyoming’s crypto banks will mostly fall under the most scrutiny.

The United States Federal Reserve Board revealed on Monday that it had finalized its guidelines for the factors reserve banks are to consider when reviewing requests for Federal Reserve accounts and payment services. The final guidelines create a three-tiered review framework with the level of due diligence to be delivered, depending on the applicant’s risk level. 


These Guidelines were first proposed in May 2021, with an additional proposal released in March, and the final guidelines, which come into force after their publication in The Federal Register, are substantially identical to them.

The Fed conveys in a statement that the institutions that contend in novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks would undergo a more extensive review.

Regardless, it continued, the framework was refined to provide more equivalent treatment between non-federally insured institutions chartered under state and federal law. Non-federally insured institutions that are leased under federal law but do not have a holding company subject to Federal Reserve oversight will be subject to the most rigorous review. Financial institutions must have a Federal Reserve account to access the global payment systems.

The Fed’s slow approach to consenting crypto banks access to Federal Reserve accounts, which are often referred to as master accounts, has long grown hackles among crypto bankers. Wyoming introduced rules to authorize blockchain banks in 2019.

In June, Custodia Bank, a Wyoming-based digital asset Bank sued the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City. The bank claimed that the 19 months it had been waiting to acquire a master account exceeded the legally set limits on response time.

The Lummis-Gillibrand Responsible Financial Innovation Act would make requirements for Fed responses to master account applications.

Federal Reserve Bank governor Michelle Bowman alerted in a statement that the new guidelines are only the first step in providing a transparent process. There is a risk that this publication could set the expectation that reviews will now be conducted on an accelerated timeline.

Hungry for more information?

NFT Calendar from NFTHi

Check out the Latest NFT News!

For more interesting updates on NFTs, connect with NFTHI on Twitter and Instagram.

Join us on Telegram!

NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.

Conduct thorough research before you start with NFTs

Share This Post

Related Posts

Elon Musk believes in Bitcoin but cautions about longer crypto winter…

In his recent tweet, Tesla owner Elon Musk indicated...

Mike Tyson teams up with Web3 game Studio Ex Populus for Iron Piegons NFTs

Mike Tyson, the “Baddest Man on the Planet”, ...

Multicoin Capital reveals $430 Million in Venture funds despite market slump and hit by a lawsuit

Crypto venture capital giant Multicoin Capital stands strong despite the market...

Access Metaverse using Oculus Quest without Facebook Login: Mark Zuckerberg

On Thursday, Zuckerberg declared that starting next month, users...

$4.7 M worth of ETH was stolen from Uniswap Protocol in a fake token Phishing Scheme

A sophisticated phishing campaign targeting liquidity providers (LPs) of...

Poloniex partners APENFT to integrate its NFT marketplace and further its Metaverse strategy

For the first time, a prominent non-fungible tokens (NFTs)...