The Federal Deposit Insurance Corporation (FDIC) has given importance to the evaluation of crypto-asset risks in its agenda for the year, 2022.
The new acting chairman of the corporation has announced that organizations like the FDIC must provide strong guidance to financial institutions on encountering risks posed by crypto-assets to its consumers.
In a statement released Monday, Acting Federal Deposit Insurance Corporation Chair Martin Gruenberg mentioned assessing crypto risks as one of the agency’s top priorities for 2022.
Further, in a statement, Gruenberg unveiled the regulator’s 2022 goals, noting that each will necessitate tight association among federal financial agencies. In addition to examining crypto-threats, the objectives of the corporation include enhancing the Community Reinvestment Act, tackling financial risks presented by climate change, assessing the bank merger process, and finishing the Basel III Capital Rule.
According to the corporate body, the fast integration of digital assets into the present financial system could pose huge amounts of danger to its safety and soundness. It stated,
“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.”
Federal banking officials must assess the dangers presented by these products and evaluate how well banking companies can properly handle them, according to Gruenberg.
FDIC to tackle an array of concerns on the priority list
Strengthening the Community Reinvestment Act (CRA), tackling financial risks posed by climate change, examining the bank merger process, and implementing the Basel III Capital Rule were among the other goals for 2022.
Former FDIC chair Jelena McWilliams stated in October of last year that the agency was focused on developing “clear guidance” for the interplay of crypto and banking. She praised the FDIC’s, the Office of the Comptroller of the Currency’s (OCC), and the Federal Reserve’s cooperation on crypto regulation, citing a so-called “sprint” between the FDIC, the OCC, and the Federal Reserve.
Following the retirement of Jelena McWilliams, Gruenberg was named acting chair on Feb. 5. Gruenberg had been a member of the FDIC board since mid-2018, and he had previously served as the agency’s chairman for five years beginning in 2012.