First Analysis: Risk of Crypto-Assets and Impact on Bank Failures

Summary

This practice note examines the recent U.S. bank failures and the risk of cryptocurrency assets at insured depository institutions. In early March 2023, three U.S. banking institutions failed resulting in increased focus on supervision and regulation by the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) (collectively the federal banking agencies). The practice note will provide an overview of applicable laws, the FDIC role in a bank failure, and explore federal guidance on the management of risk related to crypto-assets.