In Brief:
- Claims it to be imperative that banking agencies understand the risk of crypto-related assets.
- For that, agencies will need robust guidance and management of consumer protection risks.
- Other priorities involve examining the bank merger process, strengthening the Community Reinvestment Act to name a couple.
The Federal Deposit Insurance Corporation (FDIC) of the United States has made the evaluation of crypto assets, specifically the risks associated with the crypto industry, a priority this year.
FDIC Acting Chairman Martin J. Gruenberg said in a statement that it is “imperative” that federal banking agencies consider the risks posed by these products and determine how well banking organizations can handle them safely.
“To the extent such activities can be conducted in a safe and sound manner, the agencies will need to provide robust guidance to the banking industry on the management of prudential and consumer protection risks raised by crypto-asset activities,” he concluded.
The Federal Deposit Insurance Corporation (FDIC) is an independent agency established by Congress to provide deposit insurance to savings and commercial banks in the United States.
Additionally, to assess the risks associated with the crypto industry, the FDIC will examine the bank merger process, strengthen the Community Reinvestment Act (CRA), and finalize the Basel III Capital Rule, which aims to “strengthen the regulatory framework” for large banking organizations.
The FDIC’s recognition of crypto-related risks is consistent with the views of many other regulatory and law enforcement agencies in the United States like the treasury department issuing a study on money laundering through NFT artworks.
