2023-08-08 22:00:54
The Federal Reserve Board and its Innovative Activities Oversight Program
The Federal Reserve Board on Tuesday provided additional information on its program to oversee innovative activities at the banks it oversees. Innovative activities include complex technology-driven partnerships with non-banks to provide banking services to customers; and activities involving crypto-assets and distributed ledger or “blockchain” technology.
The goal of the Innovative Activities Supervision Program is to foster the benefits of financial innovation while recognizing and appropriately addressing risks to ensure the safety and soundness of the banking system.
The program will be integrated into the Federal Reserve’s existing supervisory processes, with program experts working alongside existing supervisory teams to oversee banks engaged in innovative activities.
The Process for Dollar Token or Stablecoin Business
Also on Tuesday, the Board provided additional information on the process a Federal Reserve-supervised state bank must follow before engaging in certain dollar token or stablecoin activities, including demonstrating to its supervisors the Federal Reserve that it has appropriate safeguards to conduct the business in a safe and sound manner.
The goal of greater clarity in financial services
Today’s announcements are part of the Federal Reserve’s ongoing work to create greater clarity for all parties as financial services and related technologies continue to evolve. These announcements build on the Board’s January policy statement, which clarifies the limits of certain activities, thereby promoting a level playing field for banks with federal supervisors.
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