Today, the top US banking regulators issued a joint statement on the risks of crypto assets, particularly the liquidity risks of holding deposits for cryptocurrency exchanges and stablecoin reserves. The Federal Reserve, FDIC and OCC warn of possible rapid reductions in deposits.

It is the second statement in less than two months after they highlighted a wide range of risks earlier in the year. That announcement was made on January 3, and two days later, Silvergate Bank revealed that its deposits had fallen 68% in a single quarter following the collapse of FTX and cryptocurrency clients withdrawing deposits.

The question is whether or not a particular event has triggered the last warning.

Ironically, the regulators’ statement warns of rapid deposit movements due to “market events related to the crypto-asset sector, media reports and uncertainty.” But there is a chance that these statements by regulators will trigger a market reaction.

The big news in the stablecoin world this month was that regulator NYDFS ordered Paxos to stop issuing new Binance USD (BUSD) stablecoins. The impact has been ordered in part because Binance held 80% of the tokens.

Prior to the suspension of BUSD issuance, Paxos held around 4% of BUSD reserves in cash or around $600 million, which increased to $1.4 billion around the announcement. That is significantly less compared to the largest USDC stablecoin, which had about 20% of its reserves in cash or $10.5 billion at the end of last year. Those cash deposits are spread across seven banks, including the massive BNY Mellon, but some of those banks, including Silvergate, aren’t that big.

In other news, the FDIC has reported that 136 are already involved in or planning crypto asset activities.