Cryptocurrency activities pose risk to US banking system, FDIC says
Cryptocurrency-related activities pose risks to the U.S. banking system, according to the Federal Deposit Insurance Corporation (FDIC) in its 2023 annual risk review. The FDIC, which insures deposits and supervises financial institutions in the United States, provided an entire section on crypto asset risks among the broader economic, credit, market and operational risks for banks. FDIC said “it has been generally aware of the rising interest in crypto-asset-related activities through its normal supervision process.”
Crypto-assets, with their dynamic nature and rapid pace of innovation, introduce “novel and complex risks that are difficult to fully assess,” the FDIC said. Some of the key risks identified in the report spanned from fraud, legal ambiguities and misleading or inaccurate representations or disclosures to immature risk management practices and platform vulnerabilities. The interconnections within the crypto-asset sector could also pose contagion risks for banks with significant exposure, the FDIC said. Notably, the review highlighted the potential for deposit outflows from banks holding stablecoin reserves due to stablecoin run risks. FDIC determined that more information was needed to better understand the risks associated with these activities,” it added.
Source
https://t.me/Bitcoin_Crypto_Coin_Calendar
