#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) is taking a cautious approach to banks using public blockchains like Ethereum, requiring banks to undergo more stringent scrutiny before using them. According to a trove of unredacted crypto-related communications between the FDIC and its member banks obtained by Coinbase, the FDIC appears to be unhappy with banks choosing to use public blockchains over private permissioned networks, and has instructed member banks that they must undergo a new, detailed review process before launching any products on public blockchains. Additionally, the FDIC has ordered member banks to cease implementing services related to the buying and selling of Bitcoin, and has instructed member banks to "pause all activities related to crypto assets."
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum, requiring member banks to undergo more stringent scrutiny before using them. This news stems from a trove of unredacted crypto-related communications between the FDIC and its member banks obtained by Coinbase through a Freedom of Information Act request. The documents reveal that the FDIC views the decentralized and transparent nature of public blockchains as a risk, encouraging banks to use private permissioned networks instead. In a March 2022 letter, the FDIC instructed a New York bank to undergo a new, detailed review process before launching any products on public blockchains. Additionally, the FDIC has ordered member banks to cease implementing services related to buying and selling Bitcoin and instructed member banks to "pause all activities related to crypto assets." This move indicates a conservative regulatory stance from the FDIC towards banks' use of crypto assets and public blockchains, suggesting a desire for deeper evaluation and control over these technologies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains like Ethereum, citing risks associated with their decentralized and public nature.
FDIC prefers member banks to use private permissioned networks, allowing for better control and oversight.
FDIC questions the use of public blockchains by member banks for services like digital deposits, demanding stricter scrutiny.
FDIC requires member banks to pause activities related to crypto assets, including buying and selling Bitcoin.