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ARTICLE · 17 JANUARY 2023

Heightened Scrutiny: Federal Banking Agencies Issue Joint Statement Highlighting Key Crypto Risks

Morrison Foerster
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On January 3, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the "Agencies")...

United StatesTechnology
Deborah Connor
Deborah Connor
Marc-Alain Galeazzi
Marc-Alain Galeazzi
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Jiang Liu
Jeremy Mandell
Jeremy Mandell
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Jeff Silberman
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Jason Shafer
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Malka Levitin
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On January 3, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the "Agencies") issued a joint statement that reiterates certain aspects of prior crypto-asset-related guidance and highlights risks to banking organizations (the "Joint Statement"). The Joint Statement signals that the Agencies will take an increasingly cautious approach to reviewing crypto-asset activities and business models of banking organizations to ensure that "risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system."1

The Joint Statement identifies eight key risks for banking organizations associated with crypto-assets2 and the crypto-asset sector. These key risks include:

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