FDIC: Cryptocurrencies Pose Risks to Banking System

The FDIC has noted in its annual review the potential for new and complex risks to the US banking system from crypto-related activities, citing fraud, legal ambiguities, misleading statements, and vulnerabilities in risk management.

Analysts have also highlighted “contagion” risks from institutions’ interactions with the crypto asset sector.

Along with other financial regulators, the agency has proposed monitoring and guidance measures to address these risks.

Their acting chairman, Martin J. Gruenberg, named digital assets as a priority for 2022 and the board issued a reminder to US lenders of the risks related to crypto services. Moreover, the agency linked the collapse of Signature to crypto assets in May 2023.