The US Federal Reserve plans to expedite processing of applications from crypto banks for master accounts, as the current systеm is not suitable for institutions offering crypto services.
Under the new banking industry watchdog rules introduced by the US Federal Reserve, institutions offering new types of financial products can be granted master accounts, a key financial status that allows direct payments and access to Fed. So far, all federally registered banks have a master account.The Fed is hoping the new rules will help streamline the application process for crypto banks like Custodia and Kraken. Recall that Custodia, founded by former Morgan Stanley CEO Caitlin Long, sued the Fed in June over a 19-month delay in processing an application for a master account, while the average processing time for such an application was from 5 to 7 business days.
The delay was due to the Fed’s uncertainty about how to grant traditional banking powers to such crypto-currency institutions. “The new guidelines provide a consistent and transparent process for evaluating applications for Federal Reserve accounts and access to payment services to support a secure, inclusive and innovative payment systеm,” said Fed Vice Chair Lael Brainard. Previously, Brainard called for tighter regulation of the crypto industry as the situation with a wave of defaults of crypto companies requires more careful oversight of the sector.
Source: https://bits.media/frs-ssha-vypuskaet-novye-pravila-dlya-kriptobankov/
