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ARTICLE · 17 AUGUST 2022

Fed Imposes New Roadblock On Banks' Crypto Activities

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Today, the Fed announced a new procedural requirement for banks seeking to engage in crypto activities.

United StatesTechnology
Mark Chorazak
Mark Chorazak
Donna Parisi
Donna Parisi
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Today, the Fed announced a new procedural requirement for banks seeking to engage in crypto activities. Going forward, a bank must provide formal notice to its lead supervisory contact at the Fed "prior to engaging in any crypto-asset-related activity." This notice requirement applies to all bank holding companies, savings and loan holding companies, and state-chartered member banks. The term "crypto-asset-related activity" includes, at a minimum, crypto-asset safekeeping and traditional custody services, ancillary custody services, facilitation of customer purchases and sales of crypto-assets, loans collateralized by crypto-assets, and issuance and distribution of stablecoins.

The new requirement is set forth in Supervisory Letter No. 22-6, which directs institutions to have "adequate systems, risk management, and controls to conduct crypto-asset-related activities in a safe and sound manner and consistent with applicable laws, including applicable consumer

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