On April 7, 2022, the FDIC published a letter to notify all FDIC-supervised institutions that intend to engage in, or that are currently engaged in, any activities involving or related to crypto assets or “digital assets” should notify the FDIC. FDIC-supervised institutions are requested to provide information described in the letter and the FDIC will review the information and provide relevant supervisory feedback.
Highlights of the letter include the following:
The FDIC supports innovations that are safe and sound, in compliance with the law, and fair for consumers. However, crypto assets and crypto–related activities are rapidly evolving, and given the little experience with them, the FDIC is concerned about potential risks in this area.
The FDIC is concerned that crypto–related activities may pose significant safety and soundness risks as well as financial stability issues.
Insured depository institutions face challenges when it comes to effectively managing consumer protection laws and regulations that apply to new and changing crypto–related activities, which in turn may present risks to consumers.
Pursuant to Section 39 of the Federal Deposit Insurance Act (FDI Act), the FDIC has established in Part 364 (including Appendices A and B) safety and soundness standards for all FDIC–supervised institutions.
An FDIC–supervised institution that engages, or intends to engage in, any crypto–related activities should inform the FDIC through the Regional Director and provide all the information requested by the FDIC.
The FDIC will review the relevant information submitted by the FDIC–supervised institution related to crypto-related activities and provide relevant supervisory feedback to the institution, as appropriate.
A copy of the letter can be found here.