Some US Federal regulators have recently commented on crypto activities’ risks. The watchdogs include the Federal Reserve, Federal Deposit Insurance Corp, and the Office of the Comptroller of the Currency (OFOC).
According to the report on Tuesday, January 3, 2023, some officials of the three regulatory agencies warned lenders about exposure to digital assets. They cited that the escalating risks should not extend to the banking system.
From their observations, the US regulators cited the high volatility and vulnerabilities seen in the cryptocurrency space last year. They noted the importance of hedging the banking system properly. This will ensure that the risks in the crypto space cannot extend to banks.
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