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The FDIC wants to know more about use cases for crypto at US banks

source-logo  theblock.co 17 May 2021 21:12, UTC

The Federal Deposit Insurance Corporation (FDIC) put out a request for public feedback on depository institutions holding digital assets on May 17. 

The FDIC insures bank deposits in the United States — insurance that is a requisite for depository institutions to operate in the country. Today's announcement is a call for "current and potential digital asset use cases" at insured institutions. 

Otherwise, the FDIC's interest is broad in its scope. The announcement calls for information on digital assets in payments, settlement, reserve holdings, custody and investing at member banks. 

The questions involved are notably open-ended, including: "Are there any unique aspects of digital asset activities that the FDIC should take into account from a supervisory perspective?"

As the line between crypto firms and traditional banking continues to blur, regulatory bodies like the FDIC are showing increasing interest in how to onboard crypto. As of this past autumn, the FDIC was looking for "FinTech Counsel" to join its legal team. 

The Federal Reserve recently issued similarly early-stage guidance for "novel institutions" looking to access their services, which the Fed has traditionally reserved for more rarified financial institutions.