Federal bank regulatory agencies have issued a joint statement sounding the alarm on the risks posed by crypto-assets to banking organizations. The statement highlights the volatility and vulnerabilities of the crypto-asset sector, which has experienced significant fluctuations over the past year.
In light of these risks, the agencies are taking a cautious approach to current and proposed crypto-asset-related activities within banking institutions. They emphasize the need for safe and sound practices, legal compliance, and consumer protection in all crypto-asset related activities.
The agencies will continue to closely monitor crypto-asset exposures at banking organizations and issue additional statements as necessary to address engagement by banks in crypto-asset related activities.
This joint release includes the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency. The agencies stress that they are evaluating whether current and proposed crypto-asset activities can be conducted in a manner that is both legally permissible and consumer-friendly.
The FDIC has been actively involved in this effort, with Carroll Kim providing contact information for inquiries related to the statement.
This announcement serves as a stark reminder of the potential pitfalls within the rapidly evolving crypto-asset sector and underscores the importance of responsible regulation and oversight.
RELATED: Regulators Sound Alarm on Crypto-Asset Liquidity Risks
RELATED: Regulators Warn Banks on Crypto-Asset Safekeeping Risks
Related Federal Cases
- Crypto Dreams & COVID Cash: Rideshare Driver Accused of $2M Scam · California
- Crypto Con Man Squeezed $700K From Investors · Massachusetts
- Haverhill Crypto Hustle: $625K Gone · Massachusetts
- Incline Attorney’s $1.3M Crypto Scam · Pennsylvania
- Feds Signal Green Light for Crypto Crime?
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News