$ 103,977.9
BTC
0.77 %
$ 2,473.50
ETH
0.48 %
$ 0.7903
ADA
-3.59 %
$ 650.90
BNB
-0.65 %
$ 170.29
SOL
-0.90 %

Sandeep Kumar Mishra
Jan 5, 2023

US Federal Reserve And Other Officials Strive to Warn Banks About Crypto

US Federal Reserve Crypto
The U.S. Federal Reserve and other authorities issued a crypto alert for the banking industry on Tuesday, but the statement does not contain any new guidelines for how conventional institutions should approach digital assets.

US Federal Reserve & Others Issue Warning on Crypto

According to a release from the authorities, which includes the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC), the agencies keep taking a prudent and conservative approach relating to existing or prospective crypto-asset-related operations and exposures at each financial institution, given the severe risks illustrated by the recent collapses of multiple prominent crypto-asset organizations.

The authorities claimed that it is extremely likely that issuing digital tokens or keeping them on their balance sheets would be against safe and sound banking procedures. The three authorities claimed that company models focused on cryptocurrency asset-related operations have safety and health issues.

Temporary Licenses to Cryptocurrency

The American banking watchdogs have steadfastly resisted cryptocurrencies gaining a major foothold in the established financial system. The OCC briefly granted temporary licenses to cryptocurrency trust banks and has permitted limited custody activities among lenders. However, according to the agency's current standards, lenders must seek advance clearance before engaging in any new transaction involving this industry.

In the Financial Stability Oversight Council's financial statement that highlights threats to the financial system, the leaders of the three agencies last month concurred to add cryptocurrency as a risk area.

US Federal Reserve And Other Officials Strive to Warn Banks About Crypto
Sandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He has a strong mix of skills in the areas of computer networking, cryptography, algorithms, and data structures and specializes in ERC20 tokens. Lately, he is taking a lot of interest in blockchain-powered AI solutions, about which he is also reading and writing extensively. He has to his name dozens of deeply researched articles about cryptocurrencies, blockchain, AI, and IoT. Apart from that, he loves to keep track of the latest trends in social media and digital marketing space. Also, as a huge proponent of blockchain and cryptocurrencies, Sandeep tries to deliver all the latest cryptocurrency news to ardent crypto supporters like yourselves. If you like his content, feel free to follow him on LinkedIn.

Top Picks