The US Federal Reserve issued guidelines for evaluating account and services requests. On Monday, the Central Banks announced that its Board of Directors established a three-tiered review framework to provide additional clarity considering due diligence and scrutiny.
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Fed says there are different types of institutions that get clarity with the release; institutions that are federally-insured, eligible institutions that aren’t federally insured but are subject to state supervision, and eligible institutions that aren’t federally insured and not subject to prudential supervision by a federal banking agency.
The financial authority noted that it may take relatively longer to review access applications by institutions that engage in novel activities as regulators are still working on corresponding regulatory rules.
With this step, crypto banks are getting closer to receiving a master account access to the Fed, which is necessary for having direct access to the CB's payment systems and for settling transactions with other Central Bank money participants.