The U.S. Federal Reserve urged the financial entities that are already engaging in or planning to participate in crypto activities to verify the legality of those activities.
The supervisory letter also outlines the steps that the Board-supervised banks should take prior to engaging in crypto-asset-related activities, such as assessing whether such activities are legally permissible and determining whether any regulatory filings are required.
Furthermore, those supervised banking organizations which already have integrated these crypto assets-related operations will have to ensure the safety of users by bringing adequate changes.
This includes adequate systems, risk management, and controls to conduct such activities in a safe and sound manner and consistent with all applicable laws, including applicable consumer protection statutes and regulations.
The federal agency suggested that any bank should verify that the activity they wish to integrate does hold legal permission from native state and federal laws.
Also Read: Federal Reserve Release New Guidelines for Crypto Banks
