#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum and has issued warnings to member banks requiring them to undergo a new, detailed review process before launching any products on public blockchains. The FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and transparent nature of public blockchains could pose regulatory risks. Additionally, the FDIC has asked 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." These actions indicate that the FDIC remains conservative in its regulatory stance on cryptocurrencies and seeks to maintain tight control over banks' use of crypto technologies.
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum, requiring them to undergo more stringent scrutiny before doing so. This news comes 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 sees the decentralized and transparent nature of public blockchains as a potential risk, encouraging banks to use private permissioned networks instead. The FDIC believes that the complete openness of activity on public blockchains, beyond the control of any third party, could expose banks to security and privacy risks. Additionally, the FDIC has instructed member banks to cease implementing services related to buying and selling Bitcoin and to pause all activities related to crypto assets. This event highlights the continued cautious regulatory stance towards cryptocurrencies and the concerns surrounding banks' use of public blockchains.
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 favors member banks using private permissioned networks, as they allow for control over participants and activities.
FDIC expresses concerns about banks using public blockchains for digital deposit schemes, requiring banks to undergo more rigorous scrutiny.
FDIC requires member banks to pause activities related to crypto assets, including buying and selling Bitcoin.