Banks Face Increased Scrutiny From Fed Over Crypto Activity (2)

The Federal Reserve said it is stepping up scrutiny of lenders’ involvement in digital assets, the latest move by the US regulators to limit banks’ involvement in crypto.

The Fed said Tuesday it had set up a program to strengthen oversight of activities involving digital assets and blockchain technology by the lenders it oversees. Over the past year, the central bank and other regulators have repeatedly warned lenders to be wary of risks associated with the asset class.

The program will also focus on banks’ partnerships with firms that aren’t lenders, such as fintech companies, to provide services to customers. ...