According to the Fed, Farmington State Bank did not properly notify authorities it intended 'to pursue a strategy focused on digital banking services or digital assets.”
in an effort to return to its “original mission” as a community bank. However, the Fed enforcement action suggests the bank had “engage[d] in activities related to digital assets,” including facilitating the issuance of stablecoins for an unnamed third party “in exchange for receipt of 50 percent of mint and burn fees.”
The Fed reported Farmington, based in Washington, had planned to sell its loans and deposits to the Bank of Eastern Oregon. Neither the Fed enforcement action nor the move to leave the space explicitly mentioned crypto exchange FTX, which declared bankruptcy in November 2022.The enforcement action represented the latest by federal regulators against banks with ties to crypto firms and investors in the wake of the FTX collapse.
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