Federal Deposit Insurance Corporation (FDIC)

FDIC wants to learn more about digital assets

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The Federal Deposit Insurance Corporation (FDIC) has issued a request for information and comment on digital assets, in a bid to learn more about how institutions are currently using digital assets, and how they envisage using them in the future.

The FDIC document invites interested parties to submit their comments until July 16, with FDIC preparing to review the submissions thereafter. It is thought the submissions could contribute towards plans for shaping policy via FDIC towards digital assets in the future.

The FDIC is an independent body established by the U.S. Congress to provide insurance for the U.S. financial system. With a remit that covers regulation, resolution and deposit insurance for banks and other institutions in the event of failure, FDIC plays a crucial role in ensuring trust and stability in the sector.

Their approach to dealing with digital assets could set the direction of travel for the mainstream financial industries in the U.S., with the country’s banks and other large financial institutions all classed as insured depository institutions, or IDIs.

In the request for information document, the FDIC said it saw banks taking an increasing interest in digital assets, both now and in the years to come.

“One area of new technology and innovation surrounds the use of digital assets in financial markets and intermediation, as well as with settlement and payment systems. Banks are increasingly exploring several roles in the emerging digital asset ecosystem, such as being custodians, reserve holders, issuers, and exchange or redemption agents; performing node functions; and holding digital asset issuers’ money deposits.”

“The FDIC recognizes that there are novel and unique considerations related to digital assets, and this RFI is intended to help inform the FDIC’s understanding in this area. The FDIC is seeking input on current and potential use cases involving IDIs and their affiliates and risk and compliance management in conducting such activities.”

Comments can be submitted by email or post ahead of the July 16 deadline.

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