The U.S. Federal Reserve has announced a new program for overseeing banks’ #crypto activities. The program further clarifies the requirement that lenders under its authority must obtain approval before engaging in digital assets activities.

The announcement does not change the existing crypto banking rules; it defines how the central bank intends to handle its oversight. This involves putting digital asset dealings under the new “novel activities supervision program”, in which the Fed’s experts in digital assets will work with the regulator’s regular supervisors.

The #Fed has provided more details about the need for pre-approvals for banks engaging with #stablecoins . Institutions that issue, hold, or transact in dollar tokens to facilitate payments must prove that they can do so in a “safe and sound manner”.