U.S. Agencies Set to Get Even More Cautious on Crypto, Bank Watchdog Warns

Cryptocurrencies have faced a bumpy road to gaining acceptance from the U.S. financial system. Now, they are about to encounter a fresh obstacle with banking watchdogs set to announce an even more cautious approach to regulating digital tokens.

Michael Hsu, the acting chief of the Office of the Comptroller of the Currency, said Tuesday that federal agencies are close to releasing a joint statement describing the results of their “crypto sprint,” a review the government conducted earlier this year to get a better handle on virtual currencies. He signaled that the conclusions from the OCC, Federal Reserve and Federal Deposit Insurance Corp. would be far from industry friendly.