Federal Reserve, FDIC Pull Statements on Crypto

The Federal Reserve Board and the Federal Deposit Insurance Corp. have withdrawn several statements regarding banks' crypto-related activities in an effort to support innovation and clarify current policies. From a report: Two joint statements from 2023 on liquidity and other risks regarding banks' crypto-related activities were pulled on Thursday, the FDIC said. The move aims to clarify that banking organizations may engage in crypto activities so long as they are consistent with current laws and regulations. Banks may also provide products and services to people and firms engaged in crypto-related activities, the FDIC said. Providing more clarity on banks' crypto activities in the coming weeks and months is being considered, the agencies said.

Re:Yay

[DewDude]

As someone who is concerned for how crypto is allowing terrorism funding and avoiding sanctions; this is just making America the funding source for terrorism.

We already have one fiat currency...let's not replace it with one that's even more janky.

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[SinisterEVIL]

Some quick research will show that the vast majority of funding for terrorism has actually been through the traditional banking system.

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[blackomegax]

Crypto is actually not used to any extensive degree to fund terrorism. most blockchains are auditable and transparent, so anybody can follow the money, making tracing trivial, making illegal usage discouraged. Cash, OTOH, is rampantly used. Most notable, JPMorgan Chase has faced scrutiny and been involved in cases related to anti-money laundering and terrorist financing, leading to fines and settlements with regulators.

The idea that crypto is for illegal use is outdated, debunked, and borne from FUD,

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[jacks smirking reven]

so anybody can follow the money, making tracing trivial

Wouldn't this be only if you know who owns all the addresses the the money has passed through and all the exchanges track who is buying and selling? I mean we don't even know who Satoshi is still and that account has something like 5% of all BTC still?

If I can see Bitcoin AAA4 was traded from address BXY to address SJR in the ledger that doesn't really tell me anything unless I can attach all those coins and addresses to actual people.

Could I go on a ledger right now and find out the names of every purchas

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[stabiesoft]

And yet what "currency" do hackers want to be paid in? Hackers use BTC to get paid and then quickly run it thru mixers or whatever they are called to wipe the trail. To argue that crypto is not used by criminals is just fantasy.

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[gtall]

This is just another attempt by el Bunko to bolster his crypto grift. Are you that daft you cannot see that?

He just had crypto "banquet" in Florida for his shit coins and charged the participants, and those useful idiot maggots signed right up. The word "gormless" comes to mind.

Now Everyone Can Support Terrorism

[DewDude]

Crypto is, without a doubt, the currency of anonymity because it's done for nothing but bad actions by bad actors.

Code is not a good basis for a currency. Anyone who thinks so is a goddamn fool. Imagine waking up tomorrow and finding out all your assets are worthless because the coin crashed.

But I guess when everyone has crypto access the hackers will have more incentive to do what they do. This is just going to fuck everyone over.

It's open season on seniors

[rsilvergun]

If you've got elderly parents or just elderly friends given the age bracket of this forum then you need to keep an eye on what they're doing in their finances. Because for at a minimum the next 4 years it's open season for grifters and they can hunt whatever they like with absolutely no oversight or consequences.

Millions and millions of seniors are going to have their savings wiped out and when they do they're going to have to hit up their kids for money.

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[Tablizer]

My father got swindled early in his Alzheimer state. Loss of critical judgement is a common symptom.

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[rsilvergun]

Yeah it's scary. Because you don't necessarily know it's happening that early on and they are highly vulnerable.

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[tlhIngan]

If you've got elderly parents or just elderly friends given the age bracket of this forum then you need to keep an eye on what they're doing in their finances. Because for at a minimum the next 4 years it's open season for grifters and they can hunt whatever they like with absolutely no oversight or consequences.

Millions and millions of seniors are going to have their savings wiped out and when they do they're going to have to hit up their kids for money.

Along with the cutting of Medicare/Medicaid and Socia

How long before the taxpayers have to pay?

[smooth wombat]

We all know where this is going. Some bank, somewhere, will slice and dice crypto "products" just like they did with mortgages, then sell this to their customers. In time, this will ripple through the banking system and when volatility hits the crypto gambling market, the taxpayers will be on the hook to bail out the banks from their incompetence. Again.

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[DewDude]

I say you keep it like it is now:

these are unsecured. they're not fdic insured. if you lose it, you're fucked.

I bet most people would skip using if it they knew it had zero protection and was like keeping cash in your house; once it's gone, it's gone.

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[bussdriver]

FDIC is already so weak it can't handle a medium sized crisis. Musk gave up after huge push back to kill the FDIC, instead they are moving to ruin it and take that already inadequate system to pump up crypto some more while nearly functionally killing off the FDIC from serving it's purpose in all but the smallest... hardly even "crisis" sized problems.

One of the the statements in question

[jacks smirking reven]

https://www.fdic.gov/analysis/... [fdic.gov]

Pretty telling they would pull this considering it's pretty cut and dry and they provide evidence that this was needed; Since 2022, the FDIC has taken action against more than 85 entities that were misrepresenting the nature, extent, or availability of deposit insurance. In some instances, these firms had made misleading claims in connection with crypto-assets.124 For example, on August 19, 2022, the FDIC issued letters to five companies that had made false representations stating or implying that crypto-assets were eligible for FDIC insurance, demanding that they and their officers, directors, and employees cease and desist from making false and misleading statements about FDIC deposit insurance.

I mean but this is what's to be expected, we have David Sacks as the current "Crypto Czar". I wonder if there are any conflicts of interests? I've been told my whole life we can't trust Washington bureaucrats but this guy we should think is on the up and up?

Umm.. no.

[Gravis Zero]

The Federal Reserve Board and the Federal Deposit Insurance Corp. have withdrawn several statements regarding banks' crypto-related activities under threat of immediate termination.

Fixed that for you.

I can assure you that nobody at the FDIC wants to support this "innovation".

Know your customer for Crypto?

[sjankis630]

So when they say banks have to follow current laws does this mean that banks will apply Know Your Customer guidelines and regulations when dealing with these crypto "partners"? I would think crypto and Know your Customer are more mutually exclusive than rules would allow. https://en.wikipedia.org/wiki/... [wikipedia.org] From the requirements : "In the United States, the Financial Industry Regulatory Authority (FINRA) Rule 2090 states that financial institutions must use reasonable diligence to identify and retain the

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[stabiesoft]

Interesting point. Sorry already commented so can't mod you up.