The Federal Reserve provides further guidance for banks that engage in or seek to engage in cryptoasset-related activities

On August 17, the Federal Reserve on Tuesday provided more guidance for banking institutions that participate in or seek to participate in cryptoasset-related activities. The regulatory letter issued by the Federal Reserve outlines the steps that banks regulated by the Commission should take before engaging in cryptoasset-related activities, such as assessing whether such activities are legal and determining whether any regulatory filings are required. In addition, the Regulatory Letter states that banking institutions regulated by the Commission should notify the Commission before engaging in activities related to cryptoassets. Before carrying out crypto-related activities, the regulated banking institutions should have in place the required systems and controls (measures) to carry out the relevant activities in a safe and healthy manner.