OIG: Dozens of FDIC-insured banks have crypto ambitions

WASHINGTON — The Federal Deposit Insurance Corp.'s Office of the Inspector General said dozens of FDIC-insured banks "have ongoing or planned digital asset activities," in its most recent review of the bank regulator.

In its report, the OIG summarized the most serious challenges facing the FDIC and gave a brief assessment of the agency's progress in addressing them. Given ongoing regulatory skepticism of digital assets, many who watch banking closely were surprised to learn that, according to the OIG, over a hundred FDIC-affiliated banks have existing or planned cryptocurrency related activities. 

"One hundred and thirty-six FDIC-insured banks have ongoing or planned digital asset activities," the OIG wrote in the report.  "The FDIC should work with other regulators to provide clarity regarding the regulation of digital assets. Further, the FDIC should ensure that its examinations, policies, and procedures address consumer risks regarding digital assets, including the relationship of deposit insurance and digital assets."

Like FDIC, the OIG says it sees inherent risks in housing digital assets at depository institutions. This comes as a number of community banks have moved to incorporate digital assets into their business models, including through bitcoin savings plans and offering stablecoins.

The report identifies a total of nine areas the FDIC should work on to promote public confidence and financial stability. According to the report, the agency needs to: prepare for banking crises; fortify cybersecurity at banks; address digital asset-related risks; support underserved communities; fortify internal IT safeguards; address changes in their workforce; improve data collection; strengthen FDIC's supply chain management; and implement effective governance at the agency.