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Inspector General wants FDIC to refine crypto risk assessment process, guidance

  • The Inspector General’s Office (OIG) of the Federal Deposit Insurance Corporation (FDIC) has published an evaluation report on the corporation’s crypto asset risk strategy.
  • The FDIC adopted a “bottom up” approach to crypto risk in early 2022, which includes understanding supervised institutions’ crypto-related activities, providing case-by-case supervisory feedback, and offering broader industry guidance on an interagency basis.
  • As of January 2023, 96 institutions had signaled their interest in or provided current activities with crypto assets.
  • The OIG found that the FDIC has not assessed the significance and potential impact of the risks associated with crypto assets.
  • The OIG recommended that the FDIC document its risk assessments, assess their significance, and develop mitigation strategies such as guidance.
  • The OIG also noted that the process for providing feedback to supervised institutions was unclear, and made recommendations to resolve the situation.
  • The FDIC has concurred with the OIG’s recommendations and plans to complete corrective actions by the end of January 2024.
  • Inspector generals provide independent audits, evaluations, and investigations at U.S. federal agencies.

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