US Banks Can Interact With Stable Coins With The Supervisory Nonobjection Rule
So gradually crypto is becoming something institutional firms has started to interact with it, this is a positive response from the regulatory letter that was published by the US federal reserve directing all banks to seek permission for the body before interacting with stablecoins.
The New rules which was issued on during the early hours yesterday says that notifies that a state member bank seeking to engage in activities permitted for national banks under OCC (Office of the Comptroller of the Currency) Interpretive Letter 1174, including issuing, holding, or transacting in dollar tokens to facilitate payments, is required to demonstrate, to the satisfaction of Federal Reserve supervisors, that the bank has controls in place to conduct the activity in a safe and sound manner.
To verify this requirement has been met, a state member bank should receive a written notification of supervisory nonobjection from the Federal Reserve before engaging in the proposed activities. The rules further spreads to the banks whom their intent is to carry out test operations on stablecoins that they will have to seek an approval before they can do so. The permission is tag supervisory nonobjection, this is a welcome event and another win for digital asset sector and the change is really inevitable.
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