Banking regulators have committed to conducting a risk assessment of crypto assets in 2022

<p>Federal banking authorities say they will evaluate three areas of concern in 2022: whether crypto assets are legal, safe, and adequately safeguard consumers from fraud.</p> <p>The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) released a unified statement Tuesday in response to recent interagency "policy sprints" on crypto assets. The statement outlines the primary dangers identified by regulators for financial institutions joining the crypto asset area on their own behalf, for their customers, and for financial markets in general.</p> <p>These concerns include the possibility that crypto assets would jeopardise a financial institution's safety and soundness; its capacity to comply with existing banking laws; and financial institutions' legal ability to engage in crypto asset activities.</p> <p>According to an accompanying OCC press release, the statement makes no changes to existing rules or regulations. Rather than that, it explores the points of intersection between crypto assets and regulated financial institutions. The authorities said that they will consider giving "timely clarity" to enhance "safety and soundness, consumer protection, and compliance with applicable laws and regulations, including anti-money laundering and illicit finance statutes and rules."</p> <p>Additionally, the regulators stated that they will determine whether existing regulations apply and whether any areas could benefit from additional clarity.</p> <p>According to the joint statement, some of the areas where financial institutions and crypto assets overlap include as follows:</p> <p>* Custody of digital assets</p> <p>* Facilitation of consumer cryptocurrency purchases and sales;</p> <p>* Loans secured by cryptocurrency;</p> <p>* Payment-related activities, including stablecoins pegged to a fiat currency such as the US dollar or euro; and</p> <p>* Activities that may result in a financial organisation's balance sheet containing crypto asse