Community Banking , Cryptocurrency
Joint Statement to Banking Organizations on Liquidity Risk from Crypto Assets
In late February, the Federal Reserve, FDIC, and OCC released a joint statement about the risks associated with using funding sources from crypto-asset-related entities as well as effective practices for managing those risks. The statement reminds banking organizations to follow existing risk management principles and does not introduce any new principles.
Certain sources of funding from crypto-asset-related entities can pose liquidity risks to banking organizations due to the unpredictability of deposit inflows and outflows, particularly deposits for end customers and stablecoin-related reserves. It is important for banking organizations to actively monitor and manage these risks by understanding the potential behavior of deposits, assessing concentration and the interconnectedness of deposits, incorporating liquidity risks into contingency planning, and performing due diligence on crypto-asset-related entities.
Banking organizations are also required to comply with applicable laws and regulations, including brokered deposit rules and filing requirements.
You can read the full statement here. Contact our Community Banking experts at The Whitlock Co. for further information.
View Similar Blogs
Other blogs about cybersecurity and your business
How to Minimize Tax Liability: Practical Strategies for Individuals and Businesses
When it comes to financial planning, one of the most effective ways to protect your income and assets is by understanding how to minimize your tax liability. Whether you’re a business owner or an...
Congress Passes Landmark Tax Legislation: What the New Bill Means for You
On July 3, 2025, Congress passed the most sweeping tax legislation since 2017. Known unofficially as the One Big Beautiful Bill Act, this new reconciliation bill permanently extends key elements of...
Our Cost Accounting Services and How They Lead to Actionable Profit Strategies
Do you understand how costs affect your business strategy? The Whitlock Co. leverages our cost accounting expertise to help you analyze expenses. We give you the data you need to make...