The U.S. Federal Deposit Insurance Corp. (FDIC) has included crypto as one of five broad categories in its annual risk report for 2023. The report, which looks back at crypto’s turbulent 2022, states that the agency is prepared to engage in robust supervisory discussions with the depository institutions it oversees. The FDIC also noted that as warranted, the FDIC will issue additional statements related to engagement by banking organizations in crypto-asset-related activities.
The report does not make any new policy, and it adds to the consistent view from U.S. banking agencies – including the Office of the Comptroller of the Currency and the Federal Reserve – that banks should mostly keep their distance from digital assets, unless their federal regulators are comfortable with the specific activity. Last week, the Fed announced a new supervisory program that would include crypto oversight for the bank holding companies it oversees.
Several crypto-friendly banks collapsed earlier this year, including Silvergate, Signature, and Silicon Valley Bank, the latter of which became the third-largest bank collapse in U.S. history.