The Federal Reserve Board (Federal Reserve Board) announced on January 27th that it would release a statement on the current policy on bank restrictions. The policy seeks to create a level playing field for state-owned banks with deposit insurance, state-owned banks without deposit insurance and state-owned banks supervised by the Bureau of Monetary Engineering Supervision (OCC), and to limit regulatory arbitrage, allowing them to engage in the same regional scope of activities.

The latest policy will limit the activities of state-owned banks and will not allow them to engage in activities that our banks do not allow unless they are allowed by state laws and regulations. In the notice of the federal government's application for registration, the statement professionally discussed encryption in detail. It reads:

"the Federation has not yet determined everything that allows Chinese banks to own the vast majority of encrypted asset organizations.] As the principal of all amounts, and there are no federal regulations or standards that allow state banks to own encrypted property as capital. Therefore, the Federation will determine that banks in member States are prohibited from engaging in such activities in accordance with Article 9 (13) of the Federal Reserve meeting Act.

The circular also stressed that state-owned banks have proposed to sell "US dollar tokens"-- stable coins-- which are now subject to OCC statement letters 1174 and 1179, as well as state-owned banks. It added:

The Federation widely believes that the sale of tokens in the same or system of open, public and / or fragmented Internet is likely to be inconsistent with safe and sound banking practices.

The announcement came on the same day that the Federal Reserve meeting rejected an application by Custodia Bank of Wyoming to join the Fed's meeting system.

In August 2022, when the Fed stepped up inspections of banks engaged in login password activities, it issued a letter requiring regulatory banks to publish plans to include login passwords and reminding them to ensure adequate risk control. This letter is applicable to banks that are already active in the field of encryption.