The Federal Reserve System is the central bank of the United States. "The Federal Reserve System was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law." Federal Reserve has control over monetary policy exclusively for the benefit of the United States. Typical monetary functions are money issuance, money price, interest rate, and more. Since the US Dollar has served as the de facto world currency. Federal Reserve has inevitable influences on the stability of the monetary and financial system and monetary policies of other countries.
US Fed denies Custodia Bank membership over crypto concerns
The US Federal Reserve has denied Custodia Bank's membership application due to concerns over its involvement in the crypto industry. The Fed cited heightened illicit finance and safety and soundness risks, as well as a lack of a sufficient risk-management framework for its proposed cryptoasset-related activities. The bank is also prohibited from running crypto-related services if accepted as a member.
Federal Reserve Admits Blindsided Oversight of SVB Collapse
The Federal Reserve Chairman has admitted to being blindsided by the sudden collapse of Silicon Valley Bank (SVB) despite being under their supervision. The collapse of SVB has prompted an internal investigation led by the Vice Chairman to look into the failure of the bank and the Fed’s regulation of it. The bank’s collapse has been linked to the Federal Reserve’s successive interest rate hikes and erosion of its long-term bonds. This has led to depositors requesting withdrawals en masse, causing a bank run, and the Federal Deposit Insurance Commission taking possession of SVB.
Ted Cruz Introduces Bill to Block Fed CBDC
Republican Senator Ted Cruz has introduced a bill to prevent the Federal Reserve from launching a central bank digital currency (CBDC) that could be used for financial surveillance. This is his second attempt at blocking the Fed's CBDC initiative.
Federal Regulators Testify on Bank Failures
Representatives from the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve will testify before the United States House Financial Services Commission in a hearing investigating the collapse of Silicon Valley Bank and Signature Bank. Lawmakers are seeking to understand why and how these banks failed. The hearing is expected to take place on March 29, and both the FDIC chair and the Fed Vice Chair for Supervision will appear before Congress.
Future of Silicon Valley Bank May Put Trillions of Dollars at Risk
The decisions made by the Federal Reserve and the Federal Deposit Insurance Corporation regarding the future of Silicon Valley Bank (SVB) may have significant consequences for regional banks across the United States. Former Bridgewater executive Bob Elliot has warned that a potential failure of the tech bank could trigger a bank run on thousands of small banks, putting trillions of dollars at risk.
US Federal Reserve to Create Cryptocurrency Team Amid Concerns Over Unregulated Stablecoins
The US Federal Reserve is planning to establish a specialized team of experts to keep up with developments in the cryptocurrency industry, specifically focusing on stablecoins. The move comes amid concerns that unregulated stablecoins could put households, businesses, and the broader economy at risk. While acknowledging the transformative potential of cryptocurrencies, the Federal Reserve believes that appropriate guardrails need to be in place to ensure that the benefits of innovation can be realized.
The Fed Rejects Custodia Bank's Membership Application
The Fed rejected cryptocurrency-focused Custodia Bank membership again, citing "sound banking operations."
US Representative Tom Emmer Introduces Legislation to Limit Fed
Representative Tom Emmer presented the "CBDC Anti-Surveillance State Act" to encourage financial privacy and CBDC transparency.
Billionaire investor Ray Dalio has described fiat currency as being in serious jeopardy
Bitcoin is too unpredictable to be "effective money," according to legendary investor Ray Dalio.
Custodia Bank's Application to Join Federal Reserve Rejected
Custodia, a digital asset bank, was denied membership in the Federal Reserve System.