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FDIC Head: Regulators Must Understand Crypto Risks Before Offering Guidance

By  |  October 24, 2022

United States financial regulators will likely have stronger guidance for banks regarding cryptocurrencies once those agencies have a better handle on the risks, reported PYMNTS.

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    That’s according to Martin Gruenberg, acting chairman of the Federal Deposit Insurance Corporation (FDIC), who spoke Thursday (Oct. 20) during an event at the Brookings Institution.

    “We must understand and assess the risks associated with these activities the same way that we would assess the risks related to any other new activity,” Gruenberg said, according to a Reuters report.

    He added, per the report, that a potential, stablecoin-based payments system should complement the Federal Reserve’s yet-to-be-unveiled FedNow service, as well as a U.S. central bank digital currency (CDBC), assuming the country creates one.

    Gruenberg made his comments days after the European Union’s financial services boss told U.S. lawmakers that it’s important for the U.S. to finalize its cryptocurrency oversight rules.