Cryptocurrencies
Fed Says Banks That Jump Into Crypto Must Do Legal Homework
- Lenders should let supervisors know about plans ahead of time
- Supervisory letter lists opportunities, risks of asset class
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Regulators at the Federal Reserve have a blunt warning for banks looking to take advantage of new opportunities that involve cryptocurrencies: make sure they’re legal first.
The central bank on Tuesday released a supervisory letter recommending steps that lenders overseen by the Fed should take before getting involved in the digital-asset industry. As a starting point, the Fed said, firms should notify the regulator prior to engaging in crypto-related activities and ensure that they comply with rules.