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FED Announces Crypto Supervision Program to Control Financial Companies and Digital Assets

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Fed

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The U.S. Federal Reserve (Fed) has unveiled a new program that will focus on supervising cryptocurrency assets and activities around financial institutions. One of the main goals is to oversee those activities that are related to issuing cryptocurrencies and how they engage with distributed ledger technology. 

FED Announces Crypto Supervision Program

The central bank of the United States unveiled a new regulatory agency called the Novel Activities Supervision Program that aims at controlling digital currencies and how financial companies engage with them. This program will include all those financial organizations (banks) that are supervised by the Federal Reserve. 

Thanks to this body, it will be possible for the banking authority to get closer to the industry and oversee how these companies will engage in non-bank service solutions, blockchain projects, lending to companies working in the crypto market, and more. 

This is one of the latest decisions taken by U.S. institutions in order to control the cryptocurrency market even further. In recent months, we have seen how multiple institutions have been working in order to regulate the cryptocurrency market and have more control over multiple companies. 

Cryptocurrency exchanges such as Coinbase or Binance in the United States have been carefully scrutinized and multiple other companies are already taking different actions to mitigate risk. Due to this reason, we have seen several services be limited and altcoins to be delisted from multiple platforms. Fed’s decision to create this new regulatory body shows that the government is trying to control the industry even further.