The Federal Reserve Bank of the United States has issued a final guideline for cryptocurrency companies to open accounts and use payment services. The bank stated that many institutions offering new products and charters have requested "master accounts," so it issued this guideline on August 15.
The Fed will use the guideline to assess requests for master accounts "using a transparent and consistent set of factors." According to the notice, those institutions with federal deposit insurance will have a more streamlined process, while institutions that engage in novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks will be subject to the moratorium.
The latter refers to the many crypto companies that have grown in the United States in recent years and are being scrutinized by the Fed and other governmental agencies. Federal Reserve Vice Chair Lael Brainard has previously spoken of certain aspects of the crypto market.
"The new guidelines establish a consistent and transparent process for evaluating requests for Federal Reserve accounts and payment service access to sustain a safe, inclusive, and innovative payment system."
According to crypto companies, opening master accounts would allow for more efficient delivery of orders to customers. Previous developments have been in this regard, with some companies applying for bank characters.
Circle applied to the Securities and Exchange Commission (SEC) last year to become a national bank. In contrast, Paxos applied to the Office of the Comptroller of the Currency for a national bank charter (OCC).
Custodia sued the Federal Reserve Bank of Kansas City and the Board of Governors earlier this year over a delayed application for a master account. Custodia was established in Wyoming under a crypto-friendly law that was passed in 2019.
Meanwhile, the Federal Reserve has been considering a CBDC, which Brainard believes can coexist with stablecoins. In January 2022, the Fed issued a CBDC report requesting further discussion on the subject.