Will cryptocurrencies be blocked in US banks due to attempts by regulators to prevent infection?
For the first time, US regulators have issued a joint warning to banks about the risks associated with crypto caused by the massive bankruptcies of several large crypto companies.
Raising concerns about the place of cryptocurrencies in the banking sector, three US regulators — the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) — released a joint statement on the risks of cryptocurrencies for banking organizations.
Notably, they noted that,
“The events of the last year were accompanied by significant volatility and the identification of vulnerabilities in the crypto asset sector. These developments highlight a number of key risks associated with crypto assets and participants in the crypto asset sector that banking institutions should be aware of.”
The fear here is that those risks associated with cryptocurrencies that cannot be controlled or mitigated could be transferred to the banking sector. As such, the statement says that there is currently an increased focus on the crypto sector, with regulators stating that:
“Agencies monitor banking organizations that may be exposed to risks associated with the crypto-asset sector, and carefully consider any offers of banking organizations to participate in activities related to crypto-assets.”
