The Federal Reserve on Tuesday announced a new plan to tighten oversight of banks' participation in digital assets, the latest move by U.S. regulators to limit banks' participation in cryptocurrencies.
The Fed also issued guidelines requiring state banks to seek approval from the Fed before issuing, holding or trading stablecoins to facilitate payments.
These banks must demonstrate that they have measures in place to mitigate risks, including liquidity, cybersecurity and illicit funding risks, and demonstrate that they can monitor these issues on an ongoing basis.