Regulators Are Limiting Banks Serving Crypto Clients. Does That Violate the Law?
Posted October 8, 2024 at 7:52 am EST.
United States federal bank regulators have placed limits on banks servicing the crypto industry in a way that raises concerns they may be breaking federal law.
The Federal Reserve Board and Federal Deposit Insurance Corporation (FDIC) have told several banks to cap deposits from crypto companies, most often at 15% of the bank’s total deposits, in order to manage risk, according to multiple sources familiar with the matter. Sources with knowledge of the regulators’ actions say that they are additionally concerned about real-time payment platforms favored by crypto companies in which payments can be settled 24/7, even outside normal business…
