Today, the United States Senate passed a bill to legalize cryptocurrencies in the country and introduced a tax policy. 

The FDIC (Federal Deposit Insurance Corporation) has noted that the corporation is currently working to provide US banks with guidance handling cryptocurrency-related matters. 

Report From FDIC

In a statement on Monday, Martin Gruenberg, chairman of FDIC, told the public the agency would be given utmost attention to “crypto-assets” in 2022. Also, the agency will address the issue of financial risk connected to climate change and promote the amendment of laws that affect their operation.

Also, Gruenberg outlined five significant areas the corporation considers essential to its mission. The mission of the FDIC is to sustain the confidence of the public in the country’s financial system. Evaluation of risks related to cryptocurrencies was number four on the list.

Furthermore, the chairman acknowledged the public’s increased acceptance and adoption of digital assets and their products. Digital assets are now a huge topic in the financial scene, he stated. Gruenberg called on all financial and banking institutions to join hands in evaluating the risks. Apart from assessing the risk, they are to determine the kind of crypto activities they can handle safely.

Banks Will Need Guidance

A guideline would have to be made available for banks to know how to engage in crypto activities. 

The agency is responsible for providing insurance on deposits made by clients to United States banks. The independent institution is also charged with the duty of directing financial institutions for the protection of customers and risk management. Customer safety and satisfaction is of utmost importance in the banking sector. There has been several cases of thefts and unsuspecting individuals falling to scams online as regards to cryptocurrency investment. 

Martin Gruenberg is only the agency’s acting chairman following the decision of former leader Jelena McWilliams to step down. Her stepping down has no relation to crypto-assets

McWilliams’s statement and stand on digital assets resonate with that of Gruenberg. Before she stepped down, McWilliams talked about the corporation’s effort to ensure that banks are guided on crypto-related activities. 

This guidance is coming at the right time as cryptocurrencies will soon be accepted for payment in the US. It is only fitting that banks are guided on what they can allow and not ensure that their customers’ best interest comes first.

Cryptocurrency is here to stay as even notable officials and businesses have invested heavily into it. Hopefully, this will be enough to safeguard the system from those who are looking for loopholes to take advantage of.