There is growing interest in the completion of Federal Reserve oversight of the State Bank of Farmington, which is linked to cryptocurrency exchange FTX. This is seen as important evidence that the interaction between cryptocurrencies and traditional financial systems is being investigated by regulators.
Federal Reserve Action Completed
The Block reported that the U.S. Federal Reserve has finalized enforcement action against Farmington State Bank, which was linked to bankrupt cryptocurrency exchange FTX. In August, the central bank said Washington-based Farmington State Bank and its holding company, FBH Corporation, had changed their business plans without notifying regulators.
"The Commission's enforcement action, effective from July 2023, ensures an orderly reduction in the bank's operations to protect depositors. Farmington has completed its redundancy plan and will no longer operate as a bank," the central bank said on Tuesday. said in a statement.
Lifting of supervisory measures with BNP Paribas
The Federal Reserve also announced Tuesday in Paris, France that it was terminating two enforcement actions against BNP Paribas. Farmington, formerly known as Moonstone Bank, had direct ties to Alameda Research, the trading arm of FTX. When the central bank issued enforcement action last year, Farmington said it agreed with the order. “We have received approval from all banking regulators for State Bank of Farmington's acquisition of deposits and asset purchase of Bank of Eastern Oregon. The transaction is expected to close by August 31, 2023,” the bank said in August. .
Convergence of cryptocurrency and financial system
Senators Elizabeth Warren (D-Mass.) and Tina Smith (D-Minnesota) are also investigating the bank's ties to FTX and providing details to the Federal Reserve in 2022 about how Alameda was able to acquire Moonstone Bank. I sent a letter requesting it. “So far, the banking system has been relatively unaffected by the recent cryptocurrency crash, but the collapse of FTX suggests that cryptocurrencies may be more intertwined with the banking system than regulators realize,” the letter said. said in
