2 years ago
U.S. regulators issued a associated connection to banks connected Feb. 23 informing of liquidity risks stemming from cryptocurrency-related clients and their deposits, Reuters reported.
The missive was issued by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency and included a informing connected stablecoin reserves for the archetypal clip successful history.
According to the regulators, the connection was issued successful the aftermath of caller events that highlighted volatility issues successful the manufacture and does not mandate immoderate caller actions oregon restrict banks from providing services to a sector.
The watchdogs urged banks to guarantee their monitoring tools are up to day and capable to ascertain the wellness of immoderate crypto-related money oregon deposit. They added that banks could look expanding outflows from deposits made for the payment of retail investors and stablecoin reserves.
The regulators added that stablecoins — similar cryptocurrencies — are astatine hazard of dense outflows during times of uncertainty that tin pb to unanticipated redemptions connected a ample scale.
The station US watchdogs contented associated informing to banks implicit liquidity risks stemming from crypto, stablecoin reserves appeared archetypal connected CryptoSlate.
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