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FDIC Acting chair says assessing crypto risk is the agency’s key objectives for 2022.

The FDIC, according to Martin Gruenberg, should give “strong guidance” to the banking industry on how to handle the dangers that crypto assets represent to customers. 

In a statement released Monday, Acting Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg highlighted assessing crypto risks as one of the agency’s key objectives for 2022. Following the retirement of Jelena McWilliams, who had served as FDIC chair since 2018, Gruenberg took over as interim chair on Feb. 5. Gruenberg has been a member of the FDIC board since mid-2018, and he had previously served as head of the agency for a five-year period beginning in 2012.

As per the statement acting chair FDIC says Safety and security measures must be imposed on the various crypto-assets into the banking markets. He said it’s “critical” for federal banking institutions to assess the dangers presented by these products and decide how effectively banks can properly handle them.

On adding to that, activities like that  can be carried out securely to an extent apart from that Gruenberg also says that the agencies must give a brief to the bank on financial management and consumer safety risks created by crypto-asset activities.

Strengthening the Community Reinvestment Act (CRA), tackling financial risks presented by climate change, examining the bank merger process, and implementing the Basel III Capital Rule were among the other goals set for 2022. Separately, the FDIC is still investigating whether stablecoins issued by FDIC-approved organizations qualify for pass-through protection.

 

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