##o - asset - related activities. 3 the recent volatility in crypto markets has demonstrated the extent of centralization and interconnectedness among crypto - asset companies, which contributes to amplified stress. while banks were not directly exposed to losses from these events, these episodes have highlighted potential risks for banking organizations. when a bank's deposits are concentrated in deposits from the crypto - asset industry or from cryptoasset companies that are highly interconnected or share similar risk profiles, banks may experience deposit fluctuations that are correlated and closely linked to broader developments in crypto - asset markets. in addition, misrepresentations regarding deposit insurance by crypto - asset companies can cause customer confusion and lead to increased withdrawals at banks providing deposit services to crypto - asset firms and their customers during times of stress. the fed is working with the occ and the fdic on these issues and highlighting them to supervised institutions. for example, it is important for banks to understand some of the heightened liquidity risks they may face from certain types of deposits from cryptoasset companies. this effort is not intended to discourage banks from providing access to banking products and services to businesses associated with crypto - assets. our work in this area is focused on ensuring risks are appropriately managed. looking ahead, there are additional types of crypto - asset - related activities where the fed may need to provide guidance to the banking sector in the coming months and years. regulating stablecoins 2 / 5 bis - central bankers'speeches because crypto - assets have proved to be so volatile, they are unlikely to grow into money substitutes and become a viable means to pay for transactions. however, stablecoins, which purport to maintain a stable value, have greater capacity to function as privately issued money. for this reason, they pose specific, and well - understood risks, similar to other types of money - like assets. history has shown that money - like assets are subject to runs that can threaten financial stability. stablecoins linked to the dollar are of particular interest to the federal reserve. as chair powell said the other day, a central bank is and will always be the main source of trust behind money. stablecoins borrow that trust, so we have an abiding interest in a strong federal prudential framework for their use. over time, stablecoins could pose a risk to financial stability, and it is important to get the regulatory framework right before they do. here too

, one of the principles guiding our cra modernization work is that any redesign of cra regulations should continue to encourage banks to seek opportunities in underserved areas, including rural communities. i understand that the hac has done considerable research and stakeholder engagement to shed light on the barriers to the effective use of cra in rural communities ; all of that work will benefit our reform efforts. the fed ’ s ongoing series of for example, see ann carpenter, douglas white, and mary hirt ( 2018 ), “ rental housing affordability in the southeast : data from the sixth district, ” community and economic development discussion paper 2 - 18 ( atlanta : federal reserve bank of atlanta, july ), https : / / www. frbatlanta. org / communitydevelopment / publications / discussion - papers / 2018 / 02 - rental - housing - affordability - in - the - southeast - 201807 - 19. aspx ; and andrew dumont ( 2018 ), “ rural affordable rental housing : quantifying need, reviewing recent federal support, and assessing the use of low income housing tax credits in rural areas, ” finance and economics discussion series 2018 - 077. ( washington : board of governors of the federal reserve system, november ), https : / / www. federalreserve. gov / econres / feds / files / 2018077pap. pdf. - 5roundtable discussions in communities across the country will also allow us to hear suggestions for improving cra from local stakeholders, including many people from rural communities. these perspectives will inform our deliberations on this critical regulation, and we will make a summary of our discussions available to the public. in closing, while the economy is strong overall, we recognize that some communities have yet to feel the full benefits of the ongoing expansion. we are conducting research, collaborating with communities, and assessing financial regulations so that our nation ’ s current prosperity will benefit small towns and cities alike. the work being done by tonight ’ s award recipients and by each of you in this room is critical to making progress toward that goal. thank you for being our partners in this work, and enjoy the conference.