The federalreserve and others warn U.S. banks that issuing or holding crypto on their balance sheets isn’t safe. It’s the latest of several similar statements, including last month’s financial-risk report highlighting crypto. jesseahamilton reports
Tuesday, though the statement doesn’t extend any new policies about how traditional lenders deal with digital assets.
“Given the significant risks highlighted by recent failures of several large crypto-asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related activities and exposures at each banking organization,” according to the statement from agencies that also included the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. .
Issuing digital tokens or holding them on their own balance sheets “is highly likely to be inconsistent with safe and sound banking practices,” the agencies argued. The three regulators said they have “significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities.”getting a significant toehold in the traditional financial system.
Last month, the heads of the three agencies agreed with the rest of the Financial Stability Oversight Council to
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