Fed ramps up oversight of banks’ crypto-related activities

The Federal Reserve on Tuesday said it will increase oversight of banks’ involvement in cryptocurrencies. The U.S. central bank said it has established a Novel Activities Supervision Program to step up the supervision of activities related to crypto assets and distributed ledger technology by lenders it looks over. The Fed also detailed the process state banks need to go through to get approval for issuing, holding, or transacting in dollar-backed stablecoins. These banks have to demonstrate that they established appropriate risk management practices for those activities, the Fed said.