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U.S. Regulators Warn Banks on Crypto-Related Liquidity Risks

U.S. banking regulators have warned banks about potential liquidity risks from cryptocurrency-related clients, advising them to have robust tools to monitor funds placed by crypto-asset-related entities.

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U.S. banking regulators have warned banks about liquidity risks from cryptocurrency-related clients. The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have advised banks to have robust tools to monitor funds placed by crypto-asset-related entities.

Monitor Crypto-Asset Deposits for Liquidity Risks

The agencies noted that deposits placed with banks for the benefit of crypto consumers and stablecoin reserves could be subject to rapid outflows. Banks have been cautioned to be on guard for any liquidity risks from cryptocurrency-related clients.

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