US Agencies Issue Updates on Crypto Companies and Bank Accounting
The Federal Deposit Insurance Corporation (FDIC) published the financial institution letter that contains an advisory to the FDIC institutions regarding deposit insurance and dealings with crypto companies, in addition to a fact sheet on the FDIC deposit insurance and crypto companies. Additionally, the Office of the Comptroller of the Currency (OCC) released an update to the Bank Accounting Advisory Series.
FDIC letter and fact sheet
To address certain misrepresentations about FDIC deposit insurance by some crypto companies, FDIC issued an advisory to the FDIC-insured institutions regarding deposit insurance and dealings with crypto companies. The advisory reminds insured banks that they need to be aware of how FDIC insurance operates and need to assess, manage, and control risks arising from third-party relationships, including those with crypto companies. Recently, some crypto companies have misrepresented to consumers that crypto products are eligible for FDIC deposit insurance coverage or that customers are FDIC–insured if the crypto company fails. Such statements are inaccurate and can cause consumer confusion about deposit insurance and harm consumers under certain circumstances. The fact sheet is intended to address some common and emerging misconceptions about deposit insurance coverage and its application. The FDIC deposit insurance protects bank depositors in the unlikely event that an FDIC–insured bank fails. In such an event, FDIC insures each bank depositor up to at least USD 0.25 million. However, deposit insurance does not apply on the failure of a non–bank, such as a crypto company. In addition, deposit insurance does not protect consumers with non–deposit products such as stocks, bonds, mutual funds, securities, commodities, or crypto assets.
Bank Accounting Advisory Series
The Bank Accounting Advisory Series contains staff responses to the frequently asked questions from the banking industry and bank examiners on a variety of accounting topics and promotes consistent application of accounting standards and regulatory reporting among banks. The latest edition of the Bank Accounting Advisory Series reflects updates to accounting standards issued by the Financial Accounting Standards Board on topics including:
- Amortization of premiums on debt securities with callable options during a present period
- Lessors' classification of certain leases with variable lease payments
The Bank Accounting Advisory Series does not represent rules or regulations of OCC. Rather, it represents the Office of the Chief Accountant's interpretations of generally accepted accounting principles and regulatory guidance based on the facts and circumstances presented.
Related Links
- FDIC Press Release
- FDIC Fact Sheet (PDF)
- FDIC Letter
- OCC Bulletin on Bank Accounting Advisory Series
- Bank Accounting Advisory Series
Keywords: Americas, Us, Banking, Deposit Insurance, Accounting, Bank Accounting Advisory Series, Regtech, Crypto Assets, FDIC, OCC
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.