FDIC to Prioritize Crypto Risk Assessment as Banks Perform Poorly in Q2
FDIC to Prioritize Crypto Risk Assessment as Banks Perform Poorly in Q2
With banks reporting $470 billion in unrealized losses and the FDIC expecting the trend to continue, Acting Chairman Gruenberg estimated that banks should cautiously engage in crypto-asset activities.
News
Economic uncertainty amid geopolitical tensions, rising interest charges and slowing financial growth have strained the economic machine of the United States. Reacting to the massive losses mentioned by the use of conventional banks in the second quarter of 2022, the Federal Deposit Insurance Corporation (FDIC) decided to prioritize 5 key regulations this year, which include the evaluation of the dangers of crypto assets for the banking system.
At the Senate Banking Committee at One, Acting FDIC Chairman Martin J Gruenberg pointed to the slight decline in net income for banks in the first and second quarters of 2022 due to an increase in mortgage balances and the cost provisions while pointing out that no bank failed in the following years.
As banks report $470 billion in unrealized losses and the FDIC expects this trend to continue, Gruenberg believes banks need to tread carefully in the crypto-asset sport. He mentioned the accelerated crypto hobby despite a bear market while confirming the FDIC's intention to better recognize crypto risks with the help of banks:
“The FDIC is committed to working with our supervised banks to ensure that all crypto-asset sports in which they interact are authorized banking sports that can be conducted in a safe and sound manner and in accordance with the laws guidelines and directives.”
This year, the FDIC issued cease and desist orders to crypto companies spewing misleading statements to investors and at the same time reminded insured banks of the dangers that could arise associated with such misrepresentations.
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In his written testimony, Gruenberg also referred to the many who left shoppers underwater. He further highlighted the importance of stablecoins in buying and selling various crypto assets and how federal financial regulators plan to carefully determine related regulations.
“However, the allocated ledger technology upon which they (stablecoins) are built may also prove to have significant programs and public utility within the payment system,” Gruenberg concluded.
Related:
On November 14, US President Joe Biden announced Gruenberg's appointment to wait.
Gruenberg has spent his profession fighting for buyers and is well prepared to protect the banking system against new
With banks reporting $470 billion in unrealized losses and the FDIC expecting the trend to continue, Acting Chairman Gruenberg estimated that banks should cautiously engage in crypto-asset activities.
News
Economic uncertainty amid geopolitical tensions, rising interest charges and slowing financial growth have strained the economic machine of the United States. Reacting to the massive losses mentioned by the use of conventional banks in the second quarter of 2022, the Federal Deposit Insurance Corporation (FDIC) decided to prioritize 5 key regulations this year, which include the evaluation of the dangers of crypto assets for the banking system.
At the Senate Banking Committee at One, Acting FDIC Chairman Martin J Gruenberg pointed to the slight decline in net income for banks in the first and second quarters of 2022 due to an increase in mortgage balances and the cost provisions while pointing out that no bank failed in the following years.
As banks report $470 billion in unrealized losses and the FDIC expects this trend to continue, Gruenberg believes banks need to tread carefully in the crypto-asset sport. He mentioned the accelerated crypto hobby despite a bear market while confirming the FDIC's intention to better recognize crypto risks with the help of banks:
“The FDIC is committed to working with our supervised banks to ensure that all crypto-asset sports in which they interact are authorized banking sports that can be conducted in a safe and sound manner and in accordance with the laws guidelines and directives.”
This year, the FDIC issued cease and desist orders to crypto companies spewing misleading statements to investors and at the same time reminded insured banks of the dangers that could arise associated with such misrepresentations.
>
In his written testimony, Gruenberg also referred to the many who left shoppers underwater. He further highlighted the importance of stablecoins in buying and selling various crypto assets and how federal financial regulators plan to carefully determine related regulations.
“However, the allocated ledger technology upon which they (stablecoins) are built may also prove to have significant programs and public utility within the payment system,” Gruenberg concluded.
Related:
On November 14, US President Joe Biden announced Gruenberg's appointment to wait.
Gruenberg has spent his profession fighting for buyers and is well prepared to protect the banking system against new
