Martin Gruenberg, the acting Head of the Federal Deposit Insurance Commission (FDIC) has assured that banking regulators in the United States will be responsible for providing adequate guidelines to financial institutions on how to deal with digital currencies.
Speaking at the Brookings Institute on Thursday, Gruenberg said this guidance will only come when regulators have gained a proper understanding of the risks that are associated with these nascent and volatile asset class.
“We must understand and assess the risks associated with these activities the same way that we would assess the risks related to any other new activity,” said Martin Gruenberg.
In his caution, however, the acting FDIC Chairman said stablecoins that are designed for payments will be safer if they are hosted on permissioned blockchains with robust governance and compliance mechanisms.
Overall, the FDIC has maintained that any form of deposits made at non-banking institutions are not insured by the government and that investors cannot access any form of protection in the case of a mishap.