The Fed issued final guidelines this week for its 12 regional branches to use when evaluating applications for so-called master accounts with the central bank. Such accounts allow financial institutions—primarily banks—to move trillions of dollars a day on the Fed’s payment systems. Cryptocurrency companies would be subject to a higher level of review.
Under the tiered approach the Fed decided to adopt, applications from financial firms with state charters would face more scrutiny than applications from institutions insured by the Federal Deposit Insurance Corp. or subject to federal supervision. “Institutions that engage in novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks would undergo a more extensive review,” the Fed said in a press release.