United Texas Bank Faces Cease-and-Desist Order from U.S. Federal Reserve Over Crypto Clients

The U.S. Federal Reserve issued a cease-and-desist order to United Texas Bank, citing concerns over its handling of cryptocurrency clients. This action comes amidst increasing regulatory scrutiny of banks providing services to the crypto industry, particularly those that may be exposed to potential risks associated with the volatility and legal uncertainties surrounding digital assets.

The cease-and-desist order specifically highlighted issues with the bank’s risk management practices related to its crypto clients. As regulatory pressures mount in the U.S., banks like United Texas may face tougher rules and oversight when dealing with digital currencies, potentially affecting their relationships with the broader crypto industry.