Banks should approach crypto with heightened caution, U.S. regulators say

(Reuters) - U.S. banking regulators said on Tuesday banks should be aware of key risks associated with cryptocurrency, including legal uncertainties and inaccurate or misleading disclosures by digital asset firms.

In their first joint statement on crypto, the Federal Reserve, Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency also said banks issuing or holding crypto tokens that are stored on a public, decentralized network are "highly likely" to be inconsistent with safe and sound banking practices.

The regulators also said they have safety and soundness concerns with bank business models that have concentrated exposure to the crypto sector, or those that are highly concentrated in crypto-related activities.

(Reporting by Hannah Lang in Washington; Editing by Chris Reese)