For commercial banks, activity linked to cryptocurrencies is “most likely incompatible with safe and sound banking practices,” the Fed and two other regulatory bodies said in a joint statement.
03 January 2023 21.28
The Federal Reserve (the US central bank Fed) and two US regulatory authorities alerted the country’s banks on Tuesday about the risks linked to cryptocurrencies, almost two months after the bankruptcy of the FTX platform, a giant in the sector.
For commercial banks, activity linked to cryptocurrencies is “most likely incompatible with safe and sound banking practices”, The Fed, the FDIC (federal agency in charge of guaranteeing bank deposits), and the OCC (supervisor of most of the US banking system) indicated in a joint statement.
Considering the significant risks exposed by the recent difficulties of several large crypto-asset firms, the agencies continue to take a prudent and attentive approach to current or anticipated crypto-asset activities and exposures at each banking organization.they pointed out.
The Fed, the FDIC, and the OCC consider it “important that risks associated with the crypto-asset sector that cannot be mitigated or controlled do not migrate to the traditional banking system.”
US banks are authorized to offer their clients services related to these assets. Treasury Secretary Janet Yellen is a strong supporter of “more efficient surveillance” of the cryptocurrency market.
FTX, a crypto exchange, went bankrupt in November, and its founder, Sam Bankman-Fried, will stand trial for fraud, among other charges.