A recent assessment by the Federal Deposit Insurance Corporation (FDIC) has revealed significant gaps in its ability to provide guidance to member banks regarding cryptocurrency activities. The review was prompted by the volatile nature of the crypto market, which reached a market capitalization of $3 trillion in November 2021 but has since dropped to $1.2 trillion as of April 2023. The FDIC’s failure to assess the risks associated with crypto assets and its lack of communication with member banks regarding crypto-related activities were among the deficiencies identified by the Inspector General. As a result, the FDIC has been urged to establish a plan for assessing these risks and to update its supervisory feedback process. The FDIC has agreed to these recommendations and aims to complete the necessary actions by January 2024. These findings highlight the need for legislative action on crypto asset regulation and raise concerns about the potential implications for the financial sector if these risks are not addressed. Despite ongoing discussions in Congress, draft bills on the matter have struggled to gain bipartisan support.

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Geography	North America
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Companies	FDIC, Office of Inspector General
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