US Federal Reserve, FDIC, and OCC Issue Joint Statement on Digital Asset Risks

January 3, 2023

On January 3, 2023 the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a “Joint Statement on Crypto-Asset Risks to Banking Organizations.”

The statement describes “significant volatility” and “the exposure of vulnerabilities” in the digital asset space in 2022.

The Joint Statement notes that banking organizations should be aware of the following risks (1) risks of fraud and scams, (2) legal uncertainties, (3) “inaccurate or misleading representations and disclosures by crypto-asset companies”, (4) volatility in digital asset markets, (5) the “[s]usceptibility of stablecoins to run risk”, (6) contagion risk, (7) concerns with both risk management and governance.

The full Joint Statement can be found here, https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230103a1.pdf.

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