According to Blockworks, the Federal Reserve issued a statement saying that in principle, member banks are prohibited from holding encrypted assets as principal, including Bitcoin and Ethereum, and those banks that wish to issue USD stablecoins will have to prove that they have security controls. However, state member banks may conduct business if they have in place, in principle, robust plans for managing the risks of such activities. In addition, member banks are allowed to provide safekeeping services for crypto assets on a custodial basis.