US Regulators Warn Banks of Crypto Risks

U.S. regulators warned banks that they need to learn about dangers tied to cryptocurrency belongings, together with authorized uncertainties and deceptive disclosures, two months after the collapse of FTX despatched shockwaves by the business.

Key Takeaways

  • The Federal Reserve, Federal Deposit Insurance coverage Corp, and the Workplace of the Comptroller of the Foreign money mentioned banks ought to pay attention to the dangers related to cryptocurrency. 
  • The businesses will monitor the crypto-asset-related exposures of banking organizations.
  • The joint assertion follows the collapse of the crypto alternate FTX, which unfold concern throughout the business two months in the past. 

Banks that difficulty or maintain crypto tokens on a decentralized, public community are in all probability violating protected and sound banking practices, based on an announcement from the Federal Reserve, Federal Deposit Insurance coverage Corp, and the Workplace of the Comptroller of the Foreign money. The three businesses mentioned of their first joint assertion on the crypto market that they will monitor the publicity of banks to crypto belongings.

Regulators have been reluctant to difficulty uniform steering or guidelines on crypto belongings, despite the fact that some banks have themselves sought extra readability. The assertion comes after the collapse of FTX, whose founder Sam Bankman-Fried is scheduled to go on trial in October.

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