Federal bank regulatory agencies highlighted some of the key risks for banking organizations associated with crypto-assets and the crypto-asset sector.
The statement, jointly released by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, also made some recommendations for approaches to supervision in this area.
Citing the significant volatility and vulnerabilities over the past year with crypto-assets and in the crypto-asset sector as a whole, the statement describes several key risks. Given these risks, the agencies continue to take a careful and cautious approach related to current and proposed crypto-asset-related activities and exposures at banking organizations.
Further, the agencies continue to assess whether current and proposed crypto-asset-related activities by banking organizations can be conducted in a manner that is safe and sound, legally permissible, and in compliance with applicable laws and regulations, including those designed to protect consumers. Additionally, it was asked how they would be executed and carried out if they can be conducted.
In the statement, the agencies said they will continue to closely monitor crypto-asset-related exposures of banking organizations. They will issue additional statements, as needed, related to engagement by banking organizations in crypto-asset-related activities.