Summary
The Federal Reserve has ended its enforcement action against Farmington Bank, which is linked to Sam Bankman-Fried. The Fed took action against the bank in August, stating that it had improperly changed its business model without informing the central bank. Farmington had made a commitment to work with a third party to issue stablecoins, but later announced that it was discontinuing its pursuit of an innovation-driven business model due to changing regulatory environment in the crypto assets industry. The bank has now wound down its operations and no longer functions as a bank.
Key Points
1. The Federal Reserve is ending its enforcement action into Farmington Bank, a bank linked to Sam Bankman-Fried.
2. The bank had wound down operations and “no longer functions as a bank,” according to the Federal Reserve.
3. Farmington had made a commitment to work with a third party to issue stablecoins and receive a percentage of mint and burn fees, but later discontinued its pursuit of an innovation-driven business model.