SI - Federal Reserve rolls out new guidelines for crypto-focused banks

• The U.S. Federal Reserve has released guidelines for depository institutions considering cryptocurrency-related activities, according to a supervisory letter Tuesday.
• While the emerging crypto space presents potential opportunities to the financial system, "crypto-asset-related activities may also pose risks related to safety and soundness, consumer protection, and financial stability," the Fed said.
• Banks overseen by the Fed should notify the central bank before pursuing crypto-focused activities. The Fed will determine the legality of such activities and assess whether any regulatory filings should be required.
• In addition, banks "should have adequate systems and controls in place" to conduct those activities safely.
• The move comes a day after the Fed issued guidance for how it will review requests from financial institutions to access its accounts and payment services.
• Lenders that have at least considered offering crypto-focused services include Silvergate Capital ( SI ), Customers Bancorp ( CUBI ), Metropolitan Bank ( MCB ) and SVB Financial ( SIVB ).
• In July, Fed's Brainard said crypto regulation needed "now" before it's too late .

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