The Federal Reserve has rejected the application of crypto bank Custodia to join the system members

ChainCatcher news, according to Reuters, the Federal Reserve has rejected the application of the crypto bank Custodia to join the system members, stating that the bank lacks an adequate risk management framework to address crypto risks, with significant security risks including the potential use cases of cryptocurrencies in money laundering and terrorist financing activities.

In addition, the Federal Reserve issued a policy statement that banks under the supervision of the U.S. central bank are subject to the same activity restrictions, regardless of whether they have deposit insurance, including activities related to cryptocurrencies. (Reuters)