By Godson Umejiego, Bureau Chief, The Americas
Today, the Federal Deposit Insurance Corporation, together with the Board of Governors of the Federal Reserve System (collectively, the agencies), has withdrawn two joint statements regarding banking organizations’ crypto-asset-related activities, Cyber Era NG learns.
We gather that this action is intended to provide clarity that banking organizations may engage in permissible crypto-asset activities and provide products and services to persons and firms engaged in crypto-asset related activities, consistent with safety and soundness and applicable laws and regulations.
The withdrawn joint statements, which were issued on January 3, 2023 and February 23, 2023, addressed crypto-asset risks and liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities.
The agencies, along with the Office of the Comptroller of the Currency, are exploring issuing additional clarity with respect to banking organizations’ crypto-asset and related activities in the coming weeks and months.
