U.S. FDIC Seeks Public Input To Gain Insight Into The Crypto Conducts

• The FDIC intends to collect information and solicit comments from willing parties on financial institutions’ current and potential digital asset activities
• It recognises the novel and unique considerations required for the fiat to crypto transition
• The corporation is laying the foundation for the next chapter of banking

The United States Federal Deposit Insurance Corporation (FDIC) now seeks information and public input on banks’ role and the public’s interest in the cryptocurrency industry to understand the dealings of the crypto market better.

FDIC Issued RFI

Announced Monday, the FDIC issues a request for information (RFI) to gather information and solicit comments from willing parties on financial institutions’ current and potential digital asset activities. Comments from all interested parties are appreciated and will start from July 16, 2021. 

Present And Plans For Future

The U.S. FDIC, devised initially to address bank runs during the Great Depression, is one of two primary agencies providing deposit insurance to U.S. depository institutions. The corporation acknowledges the current scenario of traditional financial institutions’ increasing participation in the crypto space and recognises the accompanying novel and unique considerations required. With aid from the public input, the corporation intends to expand its stance on the digital asset ecosystem, especially better understand the involved risks, management, and use cases in financial markets and intermediation and also the settlement and payment systems. 

Next Chapter Of Banking

According to FDIC Chairman Jelena McWilliams, they’re “laying the foundation for the next chapter of banking” with a “regulatory framework that allows responsible innovation to flourish,” reported Cointelegraph. She sees this as an opportunity for them to learn and “gain additional insight” into the market and banks’ potential role in it. 

Crypto Adoption

The agency’s move feeling out the crypto market’s conduct comes amid U.S. banks active progress towards cryptocurrency. From Morgan Stanley offering crypto services to wealthy clients, starting with Bitcoin (BTC), to Goldman Sachs’ early May-launched cryptocurrency trading desk, the financial world is evolving and evolving fast.

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.