Without mentioning recent implosion of the crypto exchange FTX by name, regulators said that due to poor oversight, crypto-asset companies are a "contagion risk" for banks. They cited other concerns, too, such as frauds or scams, legal uncertainties around custody of crypto assets, and misleading statements by crypto firms. Federal bank regulators warned banks about investing in crypto this week, in what might be a prelude to more aggressive regulations to come. While regulators warned that "risk management and governance practices" in crypto space lack "maturity and robustness," they stopped short of announcing new rules or regulations for banks that invest in crypto assets. Much more needs to happen when it comes to regulation, Schwed adds, but he doesn't expect "anything sweeping" this year.

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