New FDIC Acting Chair Says Evaluation of Crypto Risks Is a Top Priority for 2022

Acting Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg named evaluating crypto risks as one of the agency’s top priorities for 2022 in a statement issued Monday.

• Gruenberg became acting chair of the FDIC on Feb. 5 following the resignation of Jelena McWilliams, who had held the post since 2018. Gruenberg had served as an FDIC board member since mid-2018; prior to that, he was the FDIC’s chairman for a five-year term starting in 2012.
• “The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks,” Gruenberg wrote. He noted that it’s “imperative” that federal banking agencies consider the risks posed by these products, and determine how well banking organizations can safely engage in handling them.
• “To the extent such activities can be conducted in a safe and sound manner, the agencies will need to provide robust guidance to the banking industry on the management of prudential and consumer protection risks raised by crypto-asset activities,” he concluded.
• Other priorities for 2022 included strengthening the Community Reinvestment Act (CRA), addressing financial risks posed by climate change, reviewing the bank merger process and finalizing the Basel III Capital Rule.
• Separately, the FDIC has still been trying to determine whether stablecoins qualify for pass-through insurance if they are offered by FDIC-approved institutions.

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