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Top US Bank Watchdogs Issue Joint Warning on Crypto Activities

Published 03/01/2023, 19:24
© Bloomberg. The Marriner S. Eccles Federal Reserve building in Washington, D.C., US, on Wednesday, July 6, 2022. The Federal Reserve will unveil details of what policy makers debated last month that may shed light on how they view the near-term path for interest rates amid surging inflation and signs of a slowing economy.
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(Bloomberg) -- The top US bank regulators issued a fresh warning to lenders about the risks associated with crypto.

The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Tuesday detailed several concerns that the regulators have with the volatile asset class. Officials said in a statement that it was important that risks that can’t be controlled aren’t allowed to migrate to the banking system. 

“The events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector,” the agencies said.

Some of the risks that the regulators identified include:

  • Fraud and scams
  • Legal uncertainties around custody
  • Misleading statements by crypto firms
  • Contagion within the crypto sector

 

 

©2023 Bloomberg L.P.

© Bloomberg. The Marriner S. Eccles Federal Reserve building in Washington, D.C., US, on Wednesday, July 6, 2022. The Federal Reserve will unveil details of what policy makers debated last month that may shed light on how they view the near-term path for interest rates amid surging inflation and signs of a slowing economy.

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