As banks accelerate their involvement in the crypto-asset sector, the Federal Reserve has fired a warning shot across their bows. It issued a letter requiring all banks to assess the legality and risks associated with their crypto-asset activities and inform their point of contact at the Federal Reserve in advance.
Any banks already participating in crypto-assets have to do the same if they haven’t already. It also encouraged state banks to contact their state regulator.
“Given the heightened and novel risks posed by crypto-assets, the Federal Reserve is closely monitoring related developments and banking organizations’ participation in crypto-asset-related activities,” says the document
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