U. S. federal has published information about risks of crypto assets
2023.01.04 13:29
U. S. federal has published information about risks of crypto assets
Budrigannews.com – With a statement on crypto assets that looked back at the problems that the crypto industry faced in 2022, the federal bank regulatory agencies of the United States kicked off the new year. On January 3, a joint statement was issued by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) regarding past issues and their efforts to maintain sound banking practices in spite of those issues.
The agencies stated, “It is important that risks related to the crypto-asset sector that cannot be controlled or mitigated do not migrate to the banking system.” Fraud, volatility, contagion, and other well-known issues were among the eight specific risks they identified.
Additionally, the agencies stated that “Banking organizations are neither prohibited nor discouraged from providing banking services to customers of any specific class or type, as permitted by law or regulation.” However, they took a direct swipe at the industry with a stern warning:
“Based on the agencies’ current understanding and experience to date, the agencies believe that issuing or holding as principal crypto-assets that are issued, stored, or transferred on an open, public, and/or decentralized network, or similar system is highly likely to be inconsistent with safe and sound banking practices.”
With references to agencies’ “case-by-case approaches to date,” the statement hinted at the current state of cryptocurrency regulation in the United States and the possibility of change:
“Through the agencies’ case-by-case approaches to date, the agencies continue to build knowledge, expertise, and understanding of the risks crypto-assets may pose to banking organizations, their customers, and the broader U.S. financial system.”
Cryptocurrency has previously raised concerns among all banking regulatory agencies. Their mentalities are not solid, nonetheless. Stablecoins, for instance, have been praised by an FDIC official. The OCC has made strides as of late to connect all the more effectively with fintech, and the Fed has taken a functioning, if hesitant, premium in national bank computerized money.
1/ The Federal Reserve, the FDIC and the OCC just released this devastating Joint Statement on Crypto-Asset Risks to Banking Organizations. https://t.co/nvmpg0Qpf4
— Margaret Rosenfeld (@RosenfeldM) January 3, 2023
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