Banks in the United States are not immune to the current state of the economy. And as they continue to see losses, the FDIC wants to monitor crypto and how banks interact with it.
the moderate decline in net income of banks in Q1 and Q2 2022 owing to an increase in loan balances and provision expense while stating that no banks failed in the past two years.
With banks reporting $470 billion in unrealized losses and FDIC foreseeing the continuation of this trend, Gruenberg believed banks must cautiously engage in crypto-asset activities. He acknowledged the accelerated interest in crypto despite a bear market while confirming FDIC’s intent to better understand the crypto risks with the help of banks:
“The FDIC will continue to work with our supervised banks to ensure that any crypto-asset-related activities that they engage in are permissible banking activities that can be conducted in a safe and sound manner and in compliance with existing laws and regulations.”firms spewing misleading statements to investors and parallelly reminded insured banks of the risks that could arise related to such misrepresentations.that have left investors underwater.
“However, the distributed ledger technology upon which they are built may prove to have meaningful applications and public utility within the payments system,” Gruenberg concluded.
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