The US Federal Reserve, Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency have issued a joint statement on 3 January, warning the banks of the risks associated with cryptocurrencies. The regulators identified risks such as volatility of digital asset markets, contagion risk within the sector, and fraud and scams among sector participants. The regulators believed that issuing or holding as principal crypto-assets that were stored on an open, public and/or decentralized network was highly unlikely to be consistent with safe and sound banking practices. They also expressed concerns about the safety and soundness of banks focusing on crypto clients or having concentrated exposure to the sector.