Insights
Federal Reserve Hardens Stance Towards Crypto, Denies Bank Membership
Blog Chris Beckmann, Bryan Hubbard, Keith Noreika Strategy & AdvisoryWhat’s Happening
Federal Reserve (FRB) denies membership and master account application for state-chartered Custodia Bank with crypto-focused business model
FRB presumptively prohibits banks it supervises from holding crypto as principal…
Banking Regulators Send Strong Warning About Crypto Risks
Blog Chris Beckmann, Bryan Hubbard, Keith Noreika Risk Management & Compliance, Strategy & Advisory
Federal banking agencies encourage banks to monitor crypto risks, stress importance of keeping crypto sector risks isolated from broader financial system.
Regulators view open, public or decentralized networks as highly likely to be inconsistent…
Crypto Requires Robust Risk Management Framework
Blog Sudhir Jain, Joshua Kuntz Risk Management & Compliance
Effective and comprehensive risk management is key to the cryptocurrency industry’s future success.
The industry would mitigate various risks by following the five principles described here.
The recent bankruptcy of a major cryptocurrency…
FSOC Releases Digital Asset Report, Signaling Increased Future Scrutiny
Patomak Post Chris Beckmann, Robert Greene, Brian Johnson Risk Management & Compliance, Strategy & Advisory
A recent digital asset report (“Report”) issued by the Financial Stability Oversight Council (“FSOC”) criticized many digital asset market activities and market participants for lacking sufficient risk controls or amplifying financial…
Our Op-Ed in the American Banker: An Unworkable Compromise on Stablecoins
In the News Paul Atkins Strategy & Advisory
The crypto industry yearns for legislative clarity on stablecoins, but the industry and consumers may be better off under the status quo than a flawed compromise.
A one-size-fits-all approach could squash innovation.
Expanding Federal…
Federal Reserve Board Provides Additional Information for Banks Interested in Crypto-Related Activities
Patomak Post Keith Noreika, Hemal Patwa Risk Management & Compliance, Strategy & Advisory
Federal Reserve outlines step-by-step process for banks considering crypto-related activities.
Despite efforts to add controls to crypto activities, several senators still believe crypto-related activities pose too great a risk for national…
Federal Reserve Board Announces Updated Guidelines for Account Access, But Questions Remain
Patomak Post Chris Beckmann, Keith Noreika Risk Management & Compliance, Strategy & Advisory
Federal Reserve Board introduces three-tiered review system for access to its payments system.
Federally insured banks will on average have less stringent reviews, while nonbanks will receive the most diligence and scrutiny.
Despite…
Senators Pressure OCC to Rescind Crypto Bank Guidance, Adding Regulatory Uncertainty
Patomak Post Chris Beckmann, Keith Noreika Strategy & Advisory
Senators ask the Office of the Comptroller of the Currency (OCC) to rescind interpretive letters clarifying banks’ authority to engage in crypto-related activities.
Despite efforts adding controls to crypto activities, senators still…
SEC Seems Set on Blocking Spot Bitcoin ETPs
Patomak Post Adam Glazer Risk Management & Compliance, Strategy & Advisory“We took over this station because the SEC wants to hear from investors like you.” [1] For nearly two months, commuters at Washington D.C.’s Union Station — just steps from the SEC’s offices — were treated to an unusual barrage of…
FDIC Issues Crypto Deposit Insurance Advisory: Implications for Banks and Crypto Companies
Patomak Post Chris Beckmann, Keith Noreika Risk Management & Compliance
FDIC fact sheet states that only deposits at insured banks and savings associations are insured in the event of an insured institution’s failure.
Deposit insurance does not apply to financial products such as stocks, bonds, money market…
