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The guidelines by the Federal Reserve will outline the evaluation of requests for master accounts from cryptocurrency companies. United States Federal Reserve has issued final instructions for cryptocurrency businesses on the opening of accounts and the use of payment services offered by Federal Reserve Banks. The bank claims there have been numerous requests for so-called "master accounts" from organizations offering creative charters and new goods.
Transparency and Consistency to Guide Federal Reserve Decisions
The Fed published this directive on August 15 to monitor requests for master accounts with a "transparent and consistent set of factors." The announcement explained how the guidelines work, noting that institutions covered by federal deposit insurance will go through a more streamlined procedure. Institutions that participate in novel activities and for which authorities are still creating "appropriate supervisory and regulatory frameworks" would be subject to more thorough evaluations. They have stated that the formation of master accounts will enable more efficient order delivery to customers for crypto firms. Some businesses have applied for bank characters and development in this area.
Circle Filed with SEC to Become a National Bank
Last year, Circle filed with the Securities and Exchange Commission (SEC) to become a national bank. Simultaneously, the Office of the Comptroller of the Currency (OCC) received Paxos' application for a federal bank charter. A delayed application for a master account led the bitcoin bank Custodia to file a lawsuit against the Federal Reserve Bank of Kansas City and the Federal Reserve Board of Governors earlier this year. Custodia was established in accordance with a 2019 law that supported cryptocurrency in Wyoming. A CBDC has been under consideration by the Fed, and Federal Reserve Vice Chair, Lael Brainard, thinks it can coexist with stablecoins. In January 2022, the Fed released a CBDC report requesting more discussion on the issue.