Federal Deposit Insurance Corporation (FDIC), the United States Federal Deposit Insurance Corporation, has requested that thousands of financial institutions and banks it oversees declare any crypto activity and plans to do so in the future.
FDIC: Banks will disclose crypto plans
Thursday was the official announcement of The Federal Deposit Insurance Corporation (FDIC), a federal agency that Congress created to preserve stability and public faith in America’s financial system.
FDIC asks all FDIC-supervised institutions to notify the FDIC about any crypto-related activities and all information required to enable the FDIC engage the institution with regard to related risks.
FDIC is an insurer of all insured depository institution (IDIs) within the U.S., and is the principal federal supervisor for state-chartered bank and savings institutions which have not joined Federal Reserve System.
There were 4,839 FDIC insured institutions as well as 3,122 FDIC-supervised establishments, as of December 31, 2021. FDIC-supervised banks included 2,816 commercial banks and 306 savings institution.
“Any FDIC-supervised institution that is already engaged in crypto-related activities should promptly notify the FDIC. Institutions notifying the FDIC are also encouraged to notify their state regulator,” the announcement details, adding:
FDIC will evaluate the information and provide supervisory feedback.
The FDIC provided a list of risk factors related to crypto assets in its letter to supervisory entities. The FDIC outlined several risk factors relating to crypto assets. These include safety, soundness financial stability and consumer protection.
FDIC reiterated the following:
There are significant risks involved in crypto-related activity, including financial stability concerns and consumers protection concerns.
Do you agree with the FDIC asking crypto-related supervised entities to report their activities? Please comment below.
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