Banks should approach crypto with heightened caution, U.S. regulators say

Banks issuing or holding crypto tokens that are stored on a public, decentralized network are "highly likely" to be incompatible with safe and sound banking practices, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency said in their first joint statement on cryptocurrencies.

The authorities also said that they are concerned about the safety and soundness of bank business models that have concentrated exposure to the cryptocurrency industry or that are heavily focused on operations linked to cryptocurrencies.