FDIC Acting Chair Talks Prudential Regulation Of Crypto-Assets

Last week, Martin Gruenberg, Acting Chair of the Federal Deposit Insurance Corporation ("FDIC"), gave remarks at the Brookings Institution on the Prudential Regulation of Crypto-Assets.

In the speech, Acting Chair Gruenberg focused on three broad topics: (1) an overview of banking innovation and crypto assets, generally; (2) approach to prudential regulation of banks' crypto-asset related activities; and (3) potential benefits, risks and policy questions related to stablecoins.

Mr. Gruenberg spoke of the important role that innovation has played in banking. He noted numerous innovations that were beneficial and met a need, such as credit cards, mobile payments, remote check deposit, online bill pay, direct deposit, and automated teller machines. However, he "sounded several notes of caution with regard to the development of crypto assets." He said that these positive innovations were designed to operate "in a manner that is safe and sound for banks and