US Federal Reserve Guidelines for Crypto Firms Opening Master Accounts

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’...