State banks will now be under the authorization of National banks, unless the state legislation allows otherwise. Regarding Crypto, the Federal Register Notice says the following.
“The Board has not identified any authority permitting national banks to hold most crypto-assets […] As principal in any amount, and there is no federal statute or rule expressly permitting state banks to hold crypto-assets as principal. Therefore, the Board would presumptively prohibit state member banks from engaging in such activity under section 9(13) of the [Federal Reserve] Act.”
The notice also talked about how banks would like to issue their own stablecoin, but the response wasn’t favourable.
“The Board generally believes that issuing tokens on open, public, and/or decentralized networks, or similar systems is highly likely to be inconsistent with safe and sound banking practices.”
To speak to a professional on Crpyocurrency, contact KXCO.IO.
