Citing the potential legitimate risks of certain crypto assets and operations, the FDIC should inform the agency of any plans that the FDIC is considering moving to crypto, and any company already involved in such activities should notify the FDIC “immediately”. The controller said in a statement.
“Cryptocurrency-related activities can pose significant security and concrete risks, as well as financial stability and consumer protection issues,” the FDIC said, citing growing security risks.
The demand comes as US bank regulators capture the growing popularity of cryptocurrencies. Last month, US President Joe Biden asked government agencies to evaluate the risks and benefits of various cryptocurrencies, which are seen as a complete acknowledgment of the potential implications of the growing importance of digital assets.
The FDIC said on Thursday that disruptions in crypto-assets-related transactions or operations could lead to a “street” in a company’s financial assets and that consumers may be confused about the crypto-assets offered by their companies.
Prior to engaging in any activity related to cryptocurrency, the FDIC-monitored entity must notify the regulator, providing details of the planned activity and the proposed deadline. The company said it plans to review information on security and stability, financial stability and consumer protection.