FDIC will Evaluate the crypto market
2022.11.16 04:17
FDIC will Evaluate the crypto market
Budrigannews.com – Amid geopolitical tensions, rising interest rates and slowing economic growth, economic uncertainty has put pressure on the US financial system. The Federal Deposit Insurance Corporation (FDIC) has decided to prioritize key policies this year in response to the huge losses reported by traditional banks in Q2 2022.
Speaking from the Senate Banking Committee at a recent hearing, Martin J. J., acting chairman of the fdic, said: Gruenberg expects the bank’s net profit for the first and second quarters of 2022 due to increased loan balances and reserve costs
As the bank reported an unrealized loss of alized470 billion and the FDIC foresees the continuation of this trend, Gruenberg believes that the bank should be cautious about the activity of cryptoassets.He acknowledged that interest in cryptocurrencies is accelerating despite the bear market and confirmed the FDIC’s intention to better understand the risks of cryptocurrencies with the help of banks.:
“The Fdic is working with supervised banks to ensure that the crypto-asset-related activities in which they participate can be carried out safely and robustly in accordance with existing laws and regulations,” he said.
This year, the FDIC issued a cease-fire order for crypto companies that make misleading statements to investors, reminding insured banks in parallel with the risks that may arise in connection with such misrepresentations.
In his written testimony, Gruenberg also led to the collapse of numerous crypto ecosystems that left investors underwater. In addition, he highlighted the importance of stablecoins when trading various cryptoassets and how federal financial regulators carefully evaluate relevant policies.
“But the distributed ledger technology they (stablecoins) are based on has proven to have significant applications and public utility within payment systems,” he said.
Related: Acting Fdic Chairman Says Crypto Companies and Tokens Not Supported by Agency
In May. 14 (Upi) — U.S. President Joe Biden confirmed Gruenberg will become chairman of the FDIC.
Gruenberg has spent his career fighting for consumers and is well equipped to defend the banking system from new & existing threats.
Under his leadership, I am confident that the FDIC will work to ensure that banks serve the needs of American families, not just bank executives.
— Elizabeth Warren (@SenWarren) November 14, 2022
Owing to majority control of the Democratic Party, Biden may be able to see his pick go through without partisan obstructionism.
