Released on August 16 by the Federal Reserve (Fed), the Letter states that all Federal Reserve-supervised banking organizations that engage or seek to engage in crypto-asset-related activities must notify their lead supervisory point of contact at the Fed.

Prior to engaging in such activity, these organizations must :

• Ensure that the crypto-asset-related activity is legally permissible and proceed with the required filing where necessary

• Implement the relevant policies, procedures, processes, systems and controls to conduct such activity

Crypto-asset-related activities may include, but are not limited to, crypto-asset safekeeping and traditional custody services; ancillary custody services; facilitation of customer purchases and sales of crypto-assets; loans collateralized by crypto-assets; and issuance and distribution of stablecoins.