The Federal Reserve launches new measures to regulate bank cryptocurrency activities, requiring regulated banks to obtain approval for engaging in digital asset activities

ChainCatcher news, according to CoinDesk, the Federal Reserve is launching a new initiative regarding the regulation of banks' cryptocurrency activities to strengthen restrictions on activities involving digital assets and blockchain technology by banks under its supervision, meaning that banks must obtain approval before engaging in digital asset activities.

The Federal Reserve also released a more comprehensive explanation stating that regulated banks need to obtain prior approval to participate in stablecoin transactions. Any institution "issuing, holding, or trading dollar stablecoins" must demonstrate to regulators that it can conduct this business in a "safe and sound manner" and requires formal approval from the Federal Reserve. The Federal Reserve stated that the new plan will inform each bank when to review its exposure to digital assets, and the level and intensity of regulation will vary based on the extent of each regulated bank's involvement in digital asset activities.