Last month the Federal Reserve Board of Governors (Board) issued a Supervision and Regulation (SR) Letter on Engagement in Crypto-Asset-Related Activities by Federal Reserve Supervised Organizations. This letter provides guidance for all banking organizations supervised by the Federal Reserve, including those with $10 billion or less in consolidated assets.

The SR Letter issued by the Board explains that prior to engaging in crypto-asset-related activities, a Bank must ensure such activity is legally permissible, determine whether any filings are required under applicable federal or state laws, and have adequate systems, risk management, and controls established to conduct these activities in a safe and sound manner as required by the applicable laws and regulations.

If your bank is exploring these activities, CCI encourages considering the risks associated with technology and operations, anti-money laundering and countering of financing of terrorism, consumer protection and legal compliance, and financial stability. You can access the SR Letter 22-6 / CA Letter 22-6 here.

For more information regarding this or any compliance-related topic, CCI is always here to help.

Sincerely,

Jackie Smith, CRCM