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crypto

Crypto-Friendly United Texas Bank Slapped With Cease And Desist Order By The US Federal Reserve

Ash Tiwari
by Ash Tiwari
9 months ago
·
Posted in Crypto regulation
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Dallas-based United Texas Bank is the latest crypto-friendly bank to face a cease and desist order from the US Federal Reserve, according to a press release issued on September 4, 2024.

Federal Reserve Keeping A Close Eye On Bank’s Crypto Business

The US Federal Reserve has identified United Texas bank as having “significant deficiencies” in its dealings with crypto-based entities, including foreign correspondent banking and digital currency customers. 

Specifically, the Federal Reserve has raised concerns about United Texas Bank’s risk management systems, compliance with anti-money laundering (AML) rules and regulations, and the Bank Secrecy Act (BSA). Notably, the official order has not detailed how the bank fell short of achieving the required benchmarks, violating the compliance program.

Related Reading: BitMEX Execs Plead Guilty: Years Of Money Laundering Exposed

According to the order, the Federal Reserve examined the Dallas-based bank in May 2023. United Texas Bank has taken several measures to bolster its AML and BSA compliance program.

The release notes that the bank’s board of directors is working on submitting a plan to strengthen its oversight of AML and BSA compliance. The bank has 90 days from the date of issue of the cease and desist order to submit the plan. In addition, the bank must share within 60 days a written, revised customer due diligence program.

The likely cease and desist order faced by the United Texas Bank for dealing with cryptocurrencies will alert other crypto-friendly banks in the US, forcing them to review and upgrade their existing risk and AML mechanisms.

Upcoming US Elections Crucial For Crypto Industry

The tightening noose around banks and financial institutions dealing with digital currencies has reinforced the significance of the US Presidential elections scheduled for November 2024. 

As previously reported by Bitcoinist, Wyoming-based Custodia Bank had to lay off about 25% of its workforce to preserve capital for expenses related to legal proceedings against the Federal Reserve.

As a result of the Biden administration’s constant surveillance of the crypto space, overall sentiment in the crypto industry appears to have slightly tilted toward Republican Presidential candidate Donald Trump. 

Recently, Trump made public his intentions to make the US the “crypto capital of the planet.” Trump has also spoken against the constant hounding of crypto businesses in the country and indicated that he would replace the current US Securities and Exchange Commission (SEC) Gary Gensler should his Presidential candidacy be successful.

Related Reading: Donald Trump Declares Support For Cryptocurrency Companies – Details

However, to say that the crypto industry has witnessed no development or advancement under the Biden administration would be disingenuous. 

Earlier this year, the SEC approved highly-anticipated spot Bitcoin exchange-traded-funds (ETFs), paving the way for billions of dollars to be injected into the leading digital asset. Similarly, in July 2024, the financial watchdog approved spot Ethereum ETFs, allowing institutional and retail investors to gain exposure to the top smart contract platform.

Crypto
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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