Last year, the Fed asked companies to submit proposals. She then opened a request for comments process and nearly 300 people participated. Then, at the beginning of this year, there was the public consultation phase of the orientations collected. Now the Fed is creating final guidelines for bitcoin and crypto banks.
The Fed’s final guidelines on bitcoin
According a tweet from Bitcoin Magazine on August 15, “the U.S. Federal Reserve will create final guidelines for the bitcoin and the crypto banks to access its payment system“. On Monday, the Federal Reserve indicated that it would issue its final guidance. It intends to allow new financial institutions to access its “master accounts” in order to participate in the global payment system.
Fed Vice Chair Lael Brainard made a statement on the matter. Indeed, she said:The new guidelines provide a consistent and transparent process for evaluating applications for Federal Reserve accounts and access to payment services to support a safe, inclusive, and innovative payments system.“.
The Fed intends to set up a system to several levels who will help him adapt his evaluation process. In this way, access will be granted based on the type of financial institution making the request. Each level of the assessment process represents a more rigorous review process than the previous one. But in principle, crypto companies worth their salt should be able to do well.
Tier 1 banks would be federally insured. This will not be the case for Tier 2 banks. But these would still be “subject to prudential supervision by a federal banking agency“. As for the third level, it includes companies that are not subject to any of the two previous rules. Crypto banks in Wyoming are most likely going to fall into the latter category.
The Fed has put in place final guidelines for evaluating companies that do bitcoin and other cryptos. Following the evaluation, these companies will be classified in a given category. And they will have the ability to access a global payment system.
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