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Fed puts onus on banks to check legality of crypto ventures

August 17, 2022

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Before engaging in crypto-related activity, banking organizations supervised by the Federal Reserve should notify their lead point of contact at the central bank to ensure the activity is legal, the Fed said in a statement Tuesday.

The directive is similar in tone and content to a statement the Federal Deposit Insurance Corp. (FDIC) issued in April to the financial institutions it oversees. The two regulators even use the same adverb — “promptly” — to describe how soon they would like to hear from banks that have already begun engaging in crypto activities but may not have alerted the agency.

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