US Federal Regulators Issues Joint Statement on Risks Related to Crypto Assets to Banking Organizations

2023-1-4 14:46

Coinspeaker
US Federal Regulators Issues Joint Statement on Risks Related to Crypto Assets to Banking Organizations

Top United States regulatory agencies – including 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) – have issued a joint warning statement on related crypto assets risks to financial institutions. According to the announcement, the events in the crypto market for the past year have highlighted the associated risks to banking organizations in dealing with digital assets.

After the market scaled to its ATH during the fourth quarter of 2021, almost the entire crypto market has been trapped in a multi-week bear market. Notably, the Terra Luna fallout, the $600 million Ronin Bridge attack, and the FTX implosion have been attributed to the heightened crypto-assets risks.

Consequently, banks offering crypto custodial and lending services have been significantly hit by the ongoing crypto bear market and blockchain attacks. As such, worldwide regulators are concerned with crypto projects’ tokenomics, which favors founders at the expense of customers.

Feds Issue Risk Warnings to Banking Organizations Dealing with Crypto Assets

The joint statement by United States regulatory agencies is in line with Biden’s directive on the healthy adoption of blockchain technology and digital assets. Furthermore, the Biden administration issued an executive order on cryptocurrency last year, which has been adopted by Congress unanimously.

In a bid to bring sanity to the crypto market, the joint federal regulators are concerned with the legal grey area where crypto assets operate. Furthermore, most crypto projects are developed on public ledgers without a legal framework to protect users.

Nonetheless, the joint statement noted that banks are not prohibited from offering custodial or lending services.

“Banking organizations are neither prohibited nor discouraged from providing banking services to customers of any specific class or type, as permitted by law or regulation,” the joint statement reads.

Notably, the United States regulatory agencies are concerned with the high crypto volatility, which exposes banks to unwarranted operational risks. Additionally, the agencies highlighted the inaccuracies of crypto projects, which in turn give misleading data.

“The agencies are continuing to assess whether or how current and proposed crypto-asset-related activities by banking organizations can be conducted in a manner that adequately addresses safety and soundness, consumer protection, legal permissibility, and compliance with applicable laws and regulations, including anti-money laundering and illicit finance statutes and rules,” the report noted.

The agencies also highlighted the challenges related to stablecoins and the ability of banking organizations to enact proper reserves. Furthermore, most of the blockchains where stablecoins operate have unregulated governance, which may end up putting banks at risk of bad actors.

next

US Federal Regulators Issues Joint Statement on Risks Related to Crypto Assets to Banking Organizations

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

JOINT (JOINT) на Currencies.ru

$ 0.00066282 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.00016833 (293.76%)

statement assets joint crypto organizations banking regulators

Источник: coinspeaker.com

statement assets → Результатов: 126


Фото:

Binance Publishes Proof of Reserves System For BTC, More Assets to Follow

Today Binance released its first Merkel Tree Proof of Reserves (PoR) system as a show of its commitment towards transparency following the collapse of giant exchange FTX. However, in a statement, the exchange noted that it would first disclose BTC holdings before sharing details of other tokens and networks “in the next couple of weeks”. […]

2022-11-26 20:00


Big US Banks Exploring Using Bitcoin as Collateral Against Cash Loans, Fidelity Rolls-out the Service for Institutions

Fidelity Digital Assets is set to allow its institutional customers to use Bitcoin as collateral against cash loans. This new service is for those BTC investors who want to turn their holdings into cash but don’t want to sell their crypto assets either, said Tom Jessop, president of Fidelity Digital Assets, in a statement this […] The post Big US Banks Exploring Using Bitcoin as Collateral Against Cash Loans, Fidelity Rolls-out the Service for Institutions first appeared on BitcoinExchangeGuide.

2021-12-3 16:58


Digital Assets “Not Regulated by the CFTC,” Even if They Are A Commodity: CFTC Commissioner

One of the Commissioners of Commodity Futures Trading Commission (CFTC), Dawn D. Stump, released a statement on Monday detailing the agency’s regulatory authority over digital assets. She said, “The CFTC’s regulatory oversight authority, as well as the application of our enforcement authority, must be well understood by the public.

2021-8-24 17:33


South Africa’s Financial Watchdog to Regulate Crypto Assets in ‘A Phased and Structured Manner’

South Africa is ready to set crypto asset controls to curb the growing cases of fraud and scams and improve the management of cross-border flows. According to a statement by the Intergovernmental Fintech Working Group (IFWG) and the Financial Sector Conduct Authority (FSCA), the nation will start regulating cryptocurrencies with a “structured approach.

2021-6-13 17:16


SEC Extends Olive Branch to Broker-Dealers Handling Digital Assets

The move follows official charges recently brought on Ripple executives. The SEC, according to the statement, seeks to “encourage innovation” regarding digital asset securities. The Commission will reportedly grant a grace period of five years to broker-dealers who have handled digital asset securities: “…a broker-dealer operating under the circumstances set forth in the statement will … Continued The post SEC Extends Olive Branch to Broker-Dealers Handling Digital Assets appeared first on BeInCrypto.

2020-12-24 23:50


Nigerian SEC Classifies Crypto as Securities in Landmark Regulation

Nigeria’s Securities and Exchange Commission on Monday 14 Sep. announced that it recognizes crypto assets as securities, therefore bringing them under its regulatory jurisdiction. In a statement posted on the commission’s website, the regulator explained that it classifies such assets under the regulatory guidelines of Nigeria’s Investment and Securities Act, 2007 (Section 13).

2020-9-15 21:45


Telecom Giant, Vodafone, Announces Partnership With Energy Blockchain Startup, Energy Web

In an official statement released Tuesday, EW confirmed its partnership with the London based telecommunications giant to incorporate IoT and blockchain in building secure IDs for energy assets. The project will use SIM centric blockchain tech (SCB) in a bid to provide a platform for users to quickly map and access their distributed assets on […]

2020-5-29 21:19


Grayscale’s Q3 Report Shows Impressive Growth In New institutional Interest of Crypto Assets

Michael Sonnenshein gave an interview for CNBC on November 20, saying Grayscale’s recent Form 10 filing with US regulators would be great for the crypto industry if approved. At the beginning of this week, the asset manager Grayscale filed a Form 10 registration statement for the Grayscale Bitcoin Trust (GBTC), which is its Bitcoin (BTC) […]

2019-11-22 00:11


UK Jurisdiction Taskforce Defines Crypto Assets as Tradeable Property and Smart Contracts Enforceable

Coinspeaker UK Jurisdiction Taskforce Defines Crypto Assets as Tradeable Property and Smart Contracts EnforceableThe United Kingdom jurisdiction taskforce confirmed in a statement by Sir Geoffrey Vos that crypto-assets will be recognized as tradeable property while smart contracts are enforceable under English law.

2019-11-20 16:49


Фото:

Rare Joint Statement From U.S. Regulators Proves Crypto Centralization Is Here

The U. S. SEC, Fincen and CFTC issued a rare joint statement Friday addressing regulation of “activities involving digital assets. ” Citing crypto’s perceived role in money laundering and terrorism, the regulatory power trio prescribed stricter adherence to anti-money laundering (AML) policies and know your customer (KYC) protocols.

2019-10-17 01:13


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

What in the World Is Going on With Crypto Regulation?

Regulatory clarity has fueled crypto bull markets, demonstrated by Japan's 2016 adoption of crypto as payment and OCC's 2020 endorsement of crypto engagement. While global strides in clear crypto regulations are evident, particularly in Hong Kong, EU and UK, the US lags, emphasizing the need for enhanced regulatory certainty in the industry's advancement.

That Binance Suit Sure Seems Bigger Than Just a CFTC Case

Between Coinbase, Binance, Justin Sun, Do Kwon and Custodia, there has been just so much news over the last week. And that’s largely just the U. S. But Binance is the most interesting, not only for what happened (the Commodity Futures Trading Commission sued it), but also for what didn’t (the Department of Justice hasn’t filed anything).