Davis Polk partner Gabe Rosenberg was quoted in American Banker on joint statements made by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency on cryptocurrency regulation. Gabe noted that the agencies’ latest statement will likely have a chilling effect on banks taking on crypto deposits. “What they say in the statement and what they’ve said before is this is not meant to discourage or encourage any particular bank from having relationships with any particular industry,” he said. “But, banks already pay close attention to things like concentration risk, so it’s not clear to me why regulators would put out a joint statement other than to quietly push their examiners and banks away from banking crypto-related companies.”

“‘Backdoor ban’ on crypto banking? Regulatory statements raise concerns.,” American Banker (February 28, 2023) (subscription required)

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