FDIC Wants U.S. Banks to Report Current and Future Cryptocurrency-Related Activity

On Thursday, the Federal Deposit Insurance Corporation (FDIC), the U.S. government agency that insures depositors at U.S. commercial banks and savings banks, issued a letter to financial institutions. The letter requires agencies regulated by the FDIC to notify their appropriate regional directors of their crypto-related asset activities or their intent to engage in crypto-related activities.

“It is difficult for the agency and the FDIC to adequately assess the safety and soundness, financial stability, and impact on consumer protection without considering each crypto-related activity on a case-by-case basis,” the letter said.

Accordingly, the FDIC expects to receive all information necessary to "engage with agencies regarding risks" that arise from their current or anticipated crypto-related activities, and to "provide relevant information to FDIC-regulated agencies in a timely manner, as appropriate." Regulatory Feedback". The FDIC also encourages agencies to contact state regulators at the same time.

The letter suggests that institutions "should be able to demonstrate their ability to conduct encryption-related activities in a safe and sound manner." The description of the risk considerations faced by institutions is divided into three categories: safety and soundness, financial stability and consumer protection. form the bulk of this letter.

Last year, the FDIC partnered with the U.S. Office of the Comptroller of the Currency to conduct a “policy sprint” focused on cryptoassets, and released a statement on its findings in November, in which the agency outlined a “plan to The aim is to provide more clarity on the legality of certain activities undertaken by banking organizations in relation to crypto-assets, as well as expectations regarding safety and soundness, consumer protection, and compliance with existing laws and regulations.”

In February, Rep. Josh Gottheimer of New Jersey released his draft of the Stablecoin Innovation and Protection Act of 2022. If passed, the bill would designate stablecoins issued by insured depository institutions or certain non-bank issuers as "qualified" and require the FDIC to establish a Qualified Stablecoin Insurance Fund.

U.S. President Joe Biden's Executive Order on Ensuring the Responsible Development of Digital Assets lists the FDIC chair as "encouraged to consider the extent to which investor and market protections in their respective jurisdictions are available to address digital asset risks, and whether they may be required." Additional measures" official.

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