The Fed alerts US banks for risks linked to cryptocurrencies

“Considering the significant risks exposed by the recent difficulties of several large crypto-asset firms, the agencies continue to take a prudent and attentive approach to current or anticipated crypto-asset exposures and activities at each banking organization,” they noted.

The Fed, the FDIC, and the OCC consider it “important that risks associated with the crypto-asset sector that cannot be mitigated or controlled do not migrate to the traditional banking system.”

US banks are authorized to offer their clients services related to these assets.

Treasury Secretary Janet Yellen is a strong supporter of “more efficient surveillance” of the cryptocurrency market.

FTX, a crypto exchange, went bankrupt in November, and its founder, Sam Bankman-Fried, will be tried for fraud, among other charges.