Banks should manage risks from crypto firm deposits, says Barr

Michael Barr, the Federal Reserve’s vice chair of supervision, says banks that accept deposits from cryptocurrency companies should be aware of increased liquidity risks.

Michael Barr, the Federal Reserve’s vice chair of supervision, commented that banks and other financial institutions that accept deposits from cryptocurrency companies should take note of increased liquidity risks.

Barr said this in a speech on Wednesday. He added that the Federal Reserve is working with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp to pinpoint some of the risks to banks concentrating their deposits in the crypto