TechFlow, Dec 18 — According to Eleanor Terrett's disclosure, the Federal Reserve officially revoked its 2023 policy statement on Wednesday and issued a new policy to enable regulated banks to engage in innovative financial activities. This policy change removes previous restrictions that barred uninsured banks from becoming Federal Reserve members and participating in cryptocurrency-related activities—restrictions that had served as the basis for the Fed’s rejection of Custodia Bank’s master account application.
Federal Reserve Governor Michelle W. Bowman stated: "New technologies offer banks greater efficiency and customers improved products and services. By creating pathways for responsible innovation, the Federal Reserve ensures that the banking sector can modernize, operate efficiently and effectively, while remaining safe and sound."
