The joint statement addressing crypto-asset risks to banking organizations was issued by the Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Recent events of volatility in the crypto-asset sector have emphasized associated risks with crypto-assets and the sector’s participants. The key risks include, but are not limited to:
- Risk of fraud and scams,
- Misleading representations by crypto-asset companies, including misrepresentation about federal deposit insurance,
- Legal uncertainties, and
- Risk management and governance practices.
While banking organizations are not prohibited nor discouraged from providing banking services to clients of any class or type, as permitted by law, the federal agencies will continue their supervision and approach to gain expertise of the crypto-asset sector. Banking organizations should ensure their crypto-asset activities are performed in a safe and sound manner. There should be policies in place to effectively identify and manage risks. The federal “agencies have significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities or have concentrated exposures to the crypto-asset sector.”* Additional agency statements will be released when necessary.
For more information regarding the content of the joint statement on crypto-asset risks to banking organizations, please *visit this link.