FDIC Makes Crypto Evaluation a Priority This Year Citing "Significant Safety and Financial System Risks"
The U.S. Federal Deposit Insurance Corporation (FDIC) has named the evaluation of crypto assets a priority this year. “The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks,” the FDIC said. Crypto Evaluation Named a Priority for FDIC
The U.S. Federal Deposit Insurance Corporation (FDIC) announced Monday that Acting Chairman Martin J. Gruenberg has released the FDIC’s priorities for the coming year.
The FDIC is an independent agency created by the U.S. Congress to maintain stability and public confidence in the nation’s financial system.
One of the priorities is to “evaluate crypto-asset risks,” the announcement details, elaborating: The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks.
“It is imperative that the federal banking agencies carefully consider the risks posed by these products and determine the extent to which banking organizations can safely engage in crypto-asset-related activities,” the agency stressed.
“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,” the FDIC said.
In May last year, the FDIC issued a Request for Information (RFI) on crypto assets. The agency explained that it is gathering information and soliciting comments from interested parties “about insured depository institutions’ current and potential digital asset activities.”
Jelena McWilliams, who was the chairman of the FDIC at the time, said the agency is “laying the foundation for the next chapter of banking by ensuring we have a regulatory framework that allows responsible innovation to flourish.” McWilliams opined: Digital assets is one area in which we have seen rapid expansion and innovation in recent years. This RFI gives us an opportunity to gain additional insight into the market, and what role banks might play in the future.
November last year, the FDIC, the Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) announced that they are collaborating to establish crypto policies for financial institutions. Tags in this story Crypto evaluation, crypto priorities, crypto priority, FDIC bitcoin, FDIC crypto, FDIC cryptocurrency, Financial system risks, safety
What do you think about the FDIC making crypto evaluation a priority? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. US Senator: China"s Digital Currency Could Subvert US Sanctions, Enhance Surveillance Capabilities REGULATION | 20 hours ago Nigerian Blockchain Advocacy Group Says "Crypto Is Legit" — Calls for Regulation of Industry REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCovesting Token Update: All-New COV-Denominated Accounts Now Live on PrimeXBT Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItJPMorgan Lowers Its Bitcoin Fair Price Estimate to $38K Amidst Volatility
Leading investment bank JPMorgan has changed its view on the estimate of bitcoin"s price on a long-term basis. The institution had estimated a long-term price of $146K back in November when bitcoin was over $60K. One of the most important ... read more.Blockchain and Cryptocurrency Is "Here to Stay and Impossible to Regulate at Large" — CEO of a United Arab Emirates Based Bank Robinhood to Launch Crypto Trading Internationally — Sees "Immense Potential" in Crypto Economy IMF Tells El Salvador: Costs of Making Bitcoin Legal Tender Exceed Potential Benefits Ethereum Fees Drop 53% in 20 Days — Polygon Hermez, Loopring Offer Lowest L2 Fees