The U.S. Federal Deposit Insurance Corporation has asked thousands banks and financial institutions it oversees to declare any crypto activities they are currently engaging in and any future plans.
FDIC to Receive Crypto Plans from Banks
Thursday’s announcement by the Federal Deposit Insurance Corporation (FDIC), a federal agency established by Congress to preserve stability and public trust in the U.S. financial systems, was made
FDIC requests all FDIC-supervised institutions considering crypto-related activities to inform the FDIC and provide all information necessary to allow the FDIC engage with the institution about the risks.
The FDIC insures all insured depository institutions (IDIs), and is the primary federal supervisor of state-chartered savings banks and other institutions not yet enrolled in the Federal Reserve System.
There were 3,122 FDIC-insured and 4,839 FDIC supervised institutions as of December 31, 2021. There were 2,816 FDIC-insured institutions and 30,6 FDIC-insured institutions.
“Any FDIC-supervised institution involved in crypto-related activities must promptly notify the FDIC. Notifying the FDIC is also recommended for institutions that are engaged in crypto-related activities.
The FDIC will review and give supervisory feedback.
The FDIC provided a list of risk factors related to crypto assets in its letter to supervised organizations. These included safety, soundness and financial stability as well as consumer protection.
The FDIC reiterated its position:
The risks associated with crypto-related activities can be significant in terms of safety and soundness, financial stability, and consumer protection.