FDIC sees risks for the banking system in cryptocurrencies

USA123
USA123

Crypto-asset-related activities may present new and complex risks to the US banking system that are difficult to fully assess. Such a conclusion is contained in the annual review FDIC.

The corporation noted the dynamic nature and rapid pace of innovation in the digital asset space.

The FDIC noted the growing interest of institutions in crypto-related activities, which required its careful study.

Specifically, they cited threats of fraud, legal ambiguities, misleading or inaccurate statements/disclosures, as well as poor risk management practices and platform vulnerabilities.

Analysts have also pointed to “contagion” threats to institutions through ties to the crypto asset sector.

The review indicates the potential for an outflow of deposits from banks holding stablecoin collateral.

Along with other financial regulators, the agency has recommended further monitoring and guidance measures to address these risks.

In February 2022, the agency’s acting chairman, Martin Grunberg, stated that digital assets and the assessment of the threats associated with them were among the Corporation’s priorities for 2022.

One year later FedFDIC and OCC reminded US credit institutions of the potential risks posed by companies focused on providing crypto services.

Previously, the Corporation accused FTX.US, Voyager Digital and OKCoin of misleading customers.

Recall that in May 2023, the FDIC named cryptocurrencies as one of the reasons for the collapse of Signature.

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