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    FDIC Requests Information on Digital Asset Activities of Banks

    May 17, 2021

    FDIC is requesting information and soliciting comments on the current and potential digital asset activities of insured depository institutions. Since banks are increasingly exploring the emerging digital asset ecosystem, FDIC is issuing this request for information to help inform its understanding of the industry and consumer interests in this area. Among others, FDIC seeks to understand whether it should take into account any unique aspects of digital asset activities from the supervisory and regulatory perspectives and should it clarify or expand existing supervisory guidance to address digital asset activities. FDIC also notes that its Part 362 application procedures may apply to certain digital asset activities or investments and seeks to understand whether additional regulatory clarity is needed in relation to this. The comment period for this request ends on July 16, 2021.

    New technology and innovation surrounds the use of digital assets in financial markets and intermediation as well as with the settlement and payment systems. Banks are increasingly exploring several roles in the emerging digital asset ecosystem, with  the digital asset use cases and activities falling into one or more broad categories: technology solutions, asset-based activities, liability-based activities, custodial activities, and other activities. FDIC is requesting information and soliciting comments on questions regarding current and potential use cases, risk and compliance management, supervision and activities, and deposit insurance and resolution. Regarding the risk and compliance management, FDIC is requesting information on questions related to the following:

    • Extent to which existing risk and compliance management frameworks of insured depository institutions are designed to identify, measure, monitor, and control risks associated with the various digital asset use cases
    • Unique or particular risks that are challenging to measure, monitor, and control for the various digital asset use cases; unique controls or processes that could be implemented to address such risks
    • Integration of operations related to digital assets with legacy banking systems
    • Identification of any potential benefits and unique risks of particular digital asset product offerings or services to customers of insured depository institutions
    • Integration of new technologies into the existing cybersecurity functions of insured depository institutions

     

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    Comment Due Date: July 16, 2021

    Keywords: Americas, US, Banking Digital Assets, Insured Depository Institutions, Technology Risk, Fintech, Cyber Risk, Regtech, Deposit Insurance, Stablecoins, FDIC

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