The US Federal Reserve (FED) has just announced the introduction of a new programme to supervise activities related to crypto-currencies and digital assets in banks under its jurisdiction. The programme, known as the Novel Activities Supervision Program, is designed to further regulate the use of cryptos, particularly at bank level.
A programme to better supervise banks' crypto activities
While the chairman of the FED had previously stated that he considered stablecoins to be a form of currency, the institution's guidelines have evolved accordingly. The New Innovative Activity Supervision Programme has been set up to monitor banks' activity in the crypto space, including :
- Complex technology-based partnerships with non-banks to provide banking services to customers,
- Activities involving cryptoassets and blockchain technology.
Encouraging financial innovation while managing risk
The objective of the Innovative Activities Supervision Programme is to promote the benefits of financial innovation while recognising and appropriately addressing the risks associated with it. It is therefore a balanced approach aimed at encouraging the development of new financial technologies, while ensuring that banks comply with the rules in force and minimise the risks to customers.
The regulatory environment surrounding crypto-currencies in the United States
The introduction of this new programme comes at a time when the issue of crypto-currencies has become more than a little tense in the United States. The SEC, the financial markets regulator, is not lacking in zeal on the subject and is stepping up its initiatives to regulate crypto-currencies.
- Legal proceedings have been initiated against several crypto projects, including Ripple (XRP) ;
- Des déclarations concernant la nécessité de protéger les investisseurs et d'assurer la stabilité des marchés ont été faites par Gary Gensler, le président de la SEC,
- Stricter regulation of stablecoins is being considered.
A major challenge for the US economy
It is clear that the supervision of activities related to crypto-currencies and digital assets has become an important issue for the US financial authorities. The FED's new supervision programme reinforces this trend and shows that the US is looking to take on the crypto issue in a more serious and structured way.
What are the consequences for players in the crypto sector?
This new supervision programme could have several repercussions for players in the crypto-currency and digital assets market:
- US banks will have to comply with the new rules before they become more involved in crypto-related activities,
- Crypto-currency and digital asset projects will have to be more transparent and comply with existing regulations,
- Investors could benefit from better protection and a safer environment for their crypto investments.
A positive signal for the adoption of crypto-currenc
Despite the constraints involved, the development of a clear and structured regulatory framework around crypto-currencies is good news for the sector. Indeed, it shows that the financial authorities are taking these digital assets seriously and are seeking to create a favourable environment for their adoption and integration into the traditional financial system. The FED's new supervision programme could thus help to strengthen the legitimacy of cryptos and encourage their long-term development.
