FDIC Asks Supervised Institutions to Report Crypto-related Activities

The FDIC informed supervised institutions engaged in, or considering engaging in, crypto-related activities to notify the FDIC and provide information that would allow the agency to provide relevant supervisory feedback regarding related risks.

The FDIC emphasized that (i) crypto-related activities "may pose significant safety and soundness risks, as well as financial stability and consumer protection concerns"; and (ii) as crypto-related activities are "not yet fully understood," the risks posed are dynamic. Such risks include unique "credit, liquidity, market, pricing, and operational risks that could present safety and soundness concerns," as well as systemic risks (e.g., a "run" on financial assets backing a crypto asset or crypto-related activity).

The FDIC said that it will "review the notification and information received" and "provide relevant supervisory feedback to the FDIC-supervised institution, as appropriate, in a timely manner."