Headquarters of the Federal Reserve Board in Washington DC. (Photo: AFP/TTXVN)
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The Federal Reserve, on August 8, took a new step to tighten the financial operations of banks related to cryptocurrencies.
Specifically, the Fed requires member banks of the Federal Reserve System to submit and receive an unsupervised approval letter from the Fed before issuing, holding, or trading cryptocurrencies, using them as a means of payment, such as stablecoins.
The Fed also announced that it is establishing a new supervisory program to enhance the operational management capabilities of banks in the field of cryptocurrencies, blockchain technology, and non-bank partnerships based on technology.
The new program will focus on improving and enhancing technology for the existing supervisory process.
In a letter sent to banks, the Fed stated that in order to receive an unsupervised approval letter, banks must demonstrate their ability to manage feasible risks, including having a prepared coping system that can identify and monitor any potential risks, cyber threats, and financial illegal activities.
After receiving the unsupervised approval letter, member banks of the Federal Reserve System participating in cryptocurrency activities will still be subject to enhanced scrutiny and supervision.
The Fed’s announcement comes a day after global online payment platform PayPal announced its new stablecoin, PayPal USD.
PayPal USD comes at a time when the cryptocurrency industry is going through a difficult period, following the collapse of the FTX cryptocurrency exchange, which led to numerous lawsuits against the largest players in the industry.
US macroeconomic regulators are becoming more cautious with cryptocurrencies. Last month, the US House Financial Services Committee proposed legislation to establish a federal legal framework for stablecoins, focusing on registration rules and approval procedures for stablecoin issuers./.
Dieu Linh
