The Fed, whose interest rate decision on September 18 is highly anticipated, also continues its audits. The institution stated that Dallas-based United Texas Bank, which has business relations with the crypto world, has identified ‘significant deficiencies’ related to crypto customers and risk management. The Fed gave the bank a ‘cease and desist order’. This order means a request to institutions to stop operating in a certain order and not to repeat it.

Stating that it has been observing the bank since May 2023, the Fed announced that it found serious deficiencies in the controls of internal audit, board of directors and senior managers.

‘The Fed’s review identified serious deficiencies with the bank’s virtual currency customers, particularly with respect to compliance with applicable laws, rules and regulations on risk management and anti-money laundering,’ the statement said.

The bank will also have to send a written programme to the Fed on how it will carry out the necessary regulations and audits.

The bank has also worked with the Stellar Foundation and Circle many times in recent years.

In August, the Fed warned Customers Bancorp, another bank known to do business with the crypto world, for the same reasons.