The Federal Deposit Insurance Corporation’s Office of Inspector General has called on FDIC to establish a plan with time frames for reviewing crypto-related risks and update relevant feedback processes for reviewing supervised institutions’ engagement with crypto.
The recommendations were informed by an FDIC review, in which it assessed the state of its strategies to manage risks associated with crypto assets, the OIG said Wednesday.
According to the report, the lack of existing guidance on assessing risks associated with crypto activities may deter the FDIC and supervised institutions from making targeted efforts to address risks posed by crypto assets.
If FDIC does not provide financial institutions with timely feedback, the risk of FDIC being viewed as unsupportive of institutions that engage in activities associated with crypto could increase, the report said.
The FDIC intends to respond to the recommendations with corrective actions by Jan. 30, 2024.
