What Fed Supervision Letters Mean for Bank-Fintech Collab

Jason Shafer, Crystal Kaldjob, and Jeff Silberman authored an article for Law360 discussing a new supervision program for crypto activities that the Board of Governors of the Federal Reserve System issued. The two supervision and regulation letters lay out how the agency will supervise some cryptocurrency activities and the process that state member banks should follow to conduct certain stablecoin transactions.

The authors noted that, “These letters build on, and are generally consistent with the skeptical tone of, existing issuances from federal banking agencies regarding banking organizations’ crypto-related activities, including those related to stablecoin or dollar tokens. However, an alternative takeaway is that including bank-fintech partnerships in the program is an acknowledgment by the Fed that these relationships present unique issues that traditionally trained supervisors are not well-positioned to evaluate.”

Read the full article.