The US Federal Deposit Insurance Corporation (FDIC) has asked thousands of banks and other financial institutions to announce existing crypto activities and any plans to engage in crypto activities in the future.
Banks will disclose crypto plans to the FDIC
The Federal Deposit Insurance Corporation (FDIC), an agency created by Congress to maintain stability and public confidence in the US financial system, announced on Thursday:
The FDIC is requesting all FDIC-supervised institutions that are considering engaging in crypto-related activities to notify the FDIC of their intent and to provide all necessary information that will enable the FDIC to recognize the associated risks. Allow to connect with the organization in relation to.
The FDIC is the insurer for all Insured Depository Institutions (IDIs) in the US and is the primary federal supervisor for state-chartered banks and savings institutions that have not joined the Federal Reserve System.
As of December 31, 2021, there were 3,122 FDIC-supervised institutions and 4,839 FDIC-insured institutions. Of the FDIC-supervised institutions, 2,816 were commercial banks and 306 were savings institutions.
“Any FDIC-supervised institution that is already engaged in crypto-related activities should immediately notify the FDIC. Institutions that notify the FDIC are also encouraged to notify their state regulator,” Declaration details, adding:
The FDIC will review the information and provide relevant supervisory feedback.
In its letter to supervised entities, the FDIC outlined several risk considerations related to crypto assets. They included security, soundness, financial stability and consumer protection.
The FDIC reiterated:
Crypto-related activities may pose significant security and soundness risks, as well as financial stability and consumer protection concerns.
What do you think about asking entities supervised by the FDIC to disclose their crypto activities and future plans related to crypto? Let us know in the comments section below.
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