Sec. 702. Eligibility for Federal Reserve services to depository institutions
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Congress finds the following: Final settlement of transactions in central bank money reduces risk in the financial system, including through the reduction of counterparty exposure. Digital assets settle with finality in seconds or minutes, whereas traditional financial transactions may take days to settle. This mismatch in the settlement window of digital assets and traditional financial assets creates risk in the economy that may be reduced through the ability of depository institutions to simultaneously conduct digital asset transactions and settle, with finality, the United States dollar component of these transactions.
The Federal Reserve Act specifies that a depository institution, as defined in section 19(b)(1) of that Act ( 12 U.S.C. 461(b)(1) ), upon receiving a charter from the Office of the Comptroller of the Currency, National Credit Union Administration or State bank supervisor, is required to be made available services from Federal Reserve banks under section 11A of the Federal Reserve Act ( 12 U.S.C. 248a ), including currency and coin services, wire transfer services, automated clearinghouse services and settlement services.
Numerous Federal courts have found that the provision of services to depository institutions under section 11A of the Federal Reserve Act ( 12 U.S.C. 248a ) is a ministerial duty imposed by Congress with respect to all depository institutions. The Board of Governors of the Federal Reserve System has long interpreted the Federal Reserve Act to mean that the Federal Reserve banks must provide services to all depository institutions, noting that it has a duty to ensure the provision of payment services to all depository institutions on an equitable basis, and to do so in an atmosphere of competitive fairness .
The Federal Reserve banks have, on occasion, provided services to non-depository, non-insured institutions without appropriate statutory authority. Certain novel legal positions that conflict with or frustrate these precedents are not in the best traditions of the Federal Reserve Act, our dual banking system, and the imperatives of Congress. The statutory independence of the Board of Governors and the Federal Reserve banks under the Constitution of the United States is properly rooted in absolute fidelity to the laws enacted by Congress.
It is appropriate for Congress to reaffirm its existing statutory intent to ensure that all depository institutions may access services under the Federal Reserve Act on an equitable basis, and to do so in an atmosphere of competitive fairness . Section 11A of the Federal Reserve Act ( 12 U.S.C. 248a ) is amended by adding at the end the following: A Federal Reserve bank shall provide a segregated balance account to a depository institution upon the request of any institution that receives services under this section. .
Section 13 of the Federal Reserve Act ( 12 U.S.C. 342 ) is amended to read as follows: Any Federal Reserve bank shall receive from any of its member banks or other depository institutions, and from the United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable upon presentation or other items, and also, for collection, maturing notes and bills; or, solely for purposes of exchange or of collection, shall receive from other Federal Reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal Reserve banks, and checks and drafts, payable upon presentation within its district or other items, and maturing notes and bills payable within its district; or, solely for the purposes of exchange or of collection, shall receive from any nonmember bank or trust company or other depository institution deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts payable upon presentation or other items, or maturing notes and bills:
Provided, Such nonmember bank or trust company or other depository institutions maintains with the Federal Reserve bank of its district a balance in such amount as the Board determines taking into account items in transit, services provided by the Federal Reserve bank, and other factors as the Board may deem appropriate: Provided further, That nothing in this or any other section of this Act shall be construed as prohibiting a member or nonmember bank or other depository institution from making reasonable charges, to be determined and regulated by the Board of Governors, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Federal Reserve banks. .
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Sec. 702
Eligibility for Federal Reserve services to depository institutions
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