The Federal Reserve Board issued a policy statement last week that says uninsured banks supervised by the board will be subject to the same limitations on activities as insured banks and national banks.
This was done to promote a level playing field for all banks with a federal supervisor, regardless of deposit insurance status.
Further, the Fed statement reiterates that banks must conduct their business safely and ensure that the activities they engage in are allowed under the law. For example, a bank should have risk management processes, internal controls, and information systems that are appropriate and adequate for the nature, scope, and risks of its activities.
The Fed’s policy statement also applies to novel banking activities, such as crypto-asset-related activities. The Federal Reserve Board notes that it has received many inquiries, notifications, and proposals from banks regarding potential engagement in novel and unprecedented activities, including those involving crypto-assets. This new policy statement specifies how the Fed will evaluate such inquiries, consistent with longstanding practice.
It should be noted that this action would not prohibit a state member bank, or prospective applicant, from providing safekeeping services, in a custodial capacity, for crypto-assets — if conducted in a safe and sound manner and in compliance with consumer, anti-money laundering, and anti-terrorist financing laws.
The statement becomes effective upon publication in the Federal Register.
Read More:Fed issues policy statement to level playing field between uninsured, insured banks