FED Announces Latest Information on Long-Awaited Guide to Cryptocurrency!

The Fed said in a statement, cryptocurrency announced that it will publish the final guide for new financial institutions such as banks to access the “master accounts” they need to join the global payment system.

The announcement looks set to bring the Fed one step closer to the possibility of allowing Wyoming special-purpose custodians like Custodia (formerly Avanti) and Kraken Bank to access these accounts so they don’t need intermediary banks.

The Fed first proposed guidance last year and initiated a request for comment process.

Fed Vice Chairman Speaks About New Guidelines Covering Cryptocurrencies

“The new guidance provides a consistent and transparent process for evaluating requests for access to Fed accounts and payment services to support a secure, inclusive and innovative payment system,” Fed Vice Chairman Lael Brainard said in a statement.

The guidance is broadly similar to the one first proposed in 2021 and will create a multi-layered system that will allow the Fed to tailor its evaluation process to grant access depending on what type of financial institution is applying.

Under the guidance, Tier 1 banks will be federally insured. Tier 2 banks will not be federally insured but will still be “subject to precautionary supervision by a federal banking institution.”

The third tier consists of firms that are “not federally insured and not subject to precautionary supervision by a federal banking institution,” which will likely apply to Wyoming cryptocurrency banks.

of the FED bitcoin and its slow approach to granting crypto banks access to Fed accounts, often referred to as “main accounts,” has long sparked backlash among crypto bankers.

*Not investment advice.