U.S. FDIC Pressuring Banks on Info for Crypto Activity
The U.S. Federal Deposit Insurance Corporation (FDIC) a few days ago stated that the thousands of banks that they supervise needed to notify them of any crypto related actions. In addition, this means that they need to notify them of any potential plans for crypto too.
The FDIC has made it known that any firm that attempts to dive into crypto needs to notify them. In fact, such action is a priority to notify them.
Potential Threat of Safety
Various crypto related activities could pose a huge threat for financial stability. Consumers typically jump into crypto without doing much research, thus leading to issues down the road.
Since credit, pricing, liquidity, and other operational concerns are not completely understood, it causes issues for banks and financial institutions. Furthermore, the increased activity for crypto has made waves around the US and led to completely different outcomes for many investors.
Risk Aversion Might be Needed
Since most investors or people wanting to put their money into something do not fully comprehend crypto, it would be wise to do more research. Banks also should potentially seek guidance from the FDIC in an attempt to outline exactly what works best for a consumer.
The FDIC plans to review any submissions from the bank or institution to allow crypto. If this is the case, they can then coordinate a plan for how to properly invest without causing too much risk.
