The top US bank regulators issued a fresh warning to lenders about the risks associated with delving into crypto.
The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Tuesday detailed concerns with the volatile asset class. Officials said in a statement that it was important that risks that can’t be controlled aren’t allowed to migrate to the banking system.
Federal watchdogs have insisted that the impact on the broader financial system from FTX’s implosion was minimal. However, it has kindled calls for American regulators to do more to prevent further calamities. In October, Bank of New York Mellon Corp. announced the launch of a digital asset platform in the US to allow some clients to hold and transfer Bitcoin and Ether. The firm declined to comment on the regulators’ statement.
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