Gate News reports that on March 6, TD Cowen stated that following the approval of a certain crypto company’s access to the Federal Reserve’s main account, more crypto companies are expected to gain similar permissions this year. The crypto company became the first to be authorized to connect to the Federal Reserve’s core payment system. The Kansas City Fed approved a one-year “limited use” account for it, with undisclosed restrictions based on its business model and risk profile. The company qualified for the application due to holding a Wyoming special purpose depository institution license and is classified as a “Tier 3” entity by regulators. TD Cowen noted that although banking industry organizations have opposed and may file lawsuits, they are unlikely to prevent such approvals. It is expected that the Federal Reserve will restrict the company’s credit services and that it may not be able to earn reserve interest. Other crypto companies with slower application progress may need to wait for the Federal Reserve to finalize its streamlined review framework.
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