In a joint statement, several US regulatory authorities, including the Fed, alerted banks to the risks associated with cryptocurrencies.
The U.S. central bank (Fed) and two U.S. regulators alerted the U.S. banking industry on Tuesday to risks associated with cryptocurrency activity, nearly two months after industry giant FTX fell.
For commercial banks, activity related to cryptocurrencies is “most likely incompatible with safe and sound banking practices”, indicate in a joint press release the Fed, the federal body responsible for guaranteeing bank deposits (FDIC) and the OCC. , which oversees two-thirds of the US banking system.
Thus, “Given the significant risks highlighted by the recent failures of several large crypto-asset companies, the agencies continue to take a cautious and careful approach regarding current or proposed activities and exposures to crypto-assets in each banking organization”, they add.
The Fed, FDIC and OCC consider it “important that risks in the crypto-asset industry that cannot be mitigated or controlled, do not migrate to the banking system.”
However, banks remain authorized to provide their customers with services related to these assets. US Treasury Secretary Janet Yellen had vigorously pleaded in mid-November for “more effective surveillance” of the cryptocurrency market, immediately after the rout of the FTX trading platform. Several Fed officials had also wanted regulation of the sector.
In addition, the Biden administration is still working on whether or not to create a cryptodollar, which presents many advantages and opportunities, but also risks.
Pauline Armandet with AFP