TechFlow news — On October 19, according to The Block, a report released Wednesday by the Office of the Inspector General of the Federal Deposit Insurance Corporation (FDIC) stated that volatility in the crypto market over the years could impact financial institutions and ultimately affect the FDIC's mission.
The report noted that the FDIC has not yet completed a risk assessment to determine whether the agency can "adequately address risks associated with crypto assets through actions such as issuing guidance to supervised institutions." At the same time, the FDIC's procedures for providing supervisory feedback also need improvement.
The Office of the Inspector General said the FDIC should establish a timeline for assessing risks related to crypto activities. It also recommended that the FDIC update and clarify its supervisory feedback process regarding institutions' crypto-related activities. The FDIC has agreed and plans to meet these requirements by January 30.
The FDIC's Office of the Inspector General is an independent office responsible for auditing and conducting other reviews of FDIC programs.
