Banking Regulators Withdraw Statements That Discouraged Crypto
The Federal Deposit Insurance Corp. (FDIC) and the Federal Reserve have withdrawn earlier warnings that cast a chill over banks’ involvement with cryptocurrencies.
When announcing the moves Thursday (April 24), the banking regulators said they aim to signal a new regulatory openness to banks engaging in digital asset activities, provided they do so prudently and within the bounds of existing law.
The FDIC and the Fed withdrew two joint statements that were issued on Jan. 3, 2023, and Feb. 23, 2023, and addressed crypto-asset risks and liquidity risks resulting from crypto-asset market vulnerabilities, the FDIC said in a Thursday press release.
In its own press release about these moves, the Federal Reserve said the…
