Stablecoins, The Federal Reserve Order Implications And Developing Solutions: Crypto Compliance Alert

It is clear that the power of technology has to be embraced in order to allow innovation to flourish and to encourage innovative solutions. In this paper, ISOLAS LLP's Consultant and Fintech Ambassador Joey Garcia and Shlomit Azgad-Tromer, Chief Legal Officer at Sealance, provide an overview of recent developments affecting Stablecoins and potential implications for the wider industry, along with the technical developments designed to manage risk, in order to allow innovation to flourish without hindering its transformational potential.

The recent order that many people have been examining over the weekend confirmed that the Fed has denied Custodia's membership application, as well as its application for a master account. However, the order goes quite a way beyond this in an 86-page release, with the Fed detailing the "fundamental concerns" with Custodia's approach, many of which had related to its intent to issue stablecoins affiliated with the bank, and the