The Federal Deposit Insurance Corporation (FDIC) issued a financial institution letter (FIL) titled ‘Notification of Engaging in Crypto-Related Activities’ on April 7. In it, the agency focuses on the risks that, according to it, crypto may pose for both institutions and individuals, highlighting that: The letter also stated that: FDIC, whose mission is “to maintain stability and public confidence in the nation’s financial system,” has explained that it supports “safe and sound” innovations, “in compliance with laws and regulations, and fair to consumers.” However, it expressed concern over the rapidly evolving digital assets and related activities, when the “risks of this area are not well understood given the limited experience with these new activities.”
All crypto-related activities should be reported to FDIC
On top of that, the regulator has prompted the banking institutions to report any crypto-related activities, stating: The above means that every FDIC-insured bank, such as MacroStrategy which has recently loaned $205 million with collateral in Bitcoin and then an additional $190 million to buy more Bitcoin, is urged to report such activities or future plans involving crypto to the FDIC for review and feedback. Meanwhile, the total cryptocurrency market capitalization has dropped slightly below $2 trillion, recording some stagnation and a slightly bearish trend along with its major assets over the past seven days, according to CoinMarketCap data.
