FDIC Rescinds Guidance Around Banks and Crypto 48
The Federal Deposit Insurance Corporation (FDIC) says banks no longer need prior approval before engaging in crypto-related activities, such as holding digital currency assets or partnering with companies in the industry. Axios reports: After publishing a general caution against banks participating in the industry just two years ago, the FDIC is the latest Trump administration regulator to change its tune entirely amid the president's warm embrace of crypto. "With today's action, the FDIC is turning the page on the flawed approach of the past three years," FDIC acting chairman Travis Hill said in a statement.
The OCC was the first of those regulators to revise their guidance, telling banks it supervises earlier this month that they no longer need permission to engage in certain common cryptocurrency-related activities. The Fed as of Friday had not issued any update, though chair Jerome Powell told lawmakers during a congressional hearing last month that the central bank would take a fresh look at the guidance. The new policy clarifies that "FDIC-supervised institutions may engage in permissible activities, including ... digital assets, provided that they adequately manage the associated risks."
The OCC was the first of those regulators to revise their guidance, telling banks it supervises earlier this month that they no longer need permission to engage in certain common cryptocurrency-related activities. The Fed as of Friday had not issued any update, though chair Jerome Powell told lawmakers during a congressional hearing last month that the central bank would take a fresh look at the guidance. The new policy clarifies that "FDIC-supervised institutions may engage in permissible activities, including ... digital assets, provided that they adequately manage the associated risks."
y'know... (Score:3)
Maybe it is finally time to buy some gold.
Re:y'know... (Score:5, Funny)
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Not sure if Gold will help. I mean, at this rate canned food will be more valuable.
Lately I've been getting a lot of videos in my Facebook feed from some guy who opens up old canned food amongst a bunch of Fallout (the video game) themed kitsch. Spoiler alert: most of it is spoiled.
Unless you're prepping for nuclear winter, the more realistic way to deal with potential food scarcity issues is the way people did during the Great Depression - growing a garden and if possible, keeping small livestock such as chickens and rabbits. Failing that, well, assuming you've seen the movie Demolitio
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That would be mrs.fallout [tiktok.com], who is not a guy.
Bold of you to assume (Score:2)
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And goats. Milk, butter, cheese, meat in a pinch. Perfect for your suburbian heaven.
Re: y'know... (Score:2)
Adds a whole new meaning to âoethe goose that laid golden eggsâ, doesn't it?
Perhaps, it was a prophesy?
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Have you ever tried raising chickens? You really need the right environment. You need to protect them from cats, dogs, rats, etc. And if you keep them inside, you may end up smelling like chicken shit.
In the right situation, it's great advice. But it's got lots of drawbacks in urban or even suburban areas. (And you may need to stock up on crushed oyster shells. Chickens need a LOT of calcium. And be sure you get a couple of roosters if you want a durable population...but check out the breed. Rooster
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I am in awe of the ignorance of "survivalists" who think they will survive by raising chickens.
Basic math: Chickens convert chicken feed (corn, etc.) to usable calories in a ratio of about 10% so these morons will feed perfectly good grains to animals, lose 90% of the nutrition, and starve 10 times faster.
Unlash the Grifters! (Score:5, Insightful)
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The cultists think he is doing a great job everything they ever wanted and he was brought to us by Jesus.
But it is not a cult. According to them, anyway. So stop calling it that.
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Who did the dying? Give it to Panama. (Or possibly Nicaragua.)
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But it is not a cult. According to them, anyway. So stop calling it that.
Respect their pronouns!
100% political decision (Score:2)
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Wong, it was purely to raise the wealth of el Biunlo. He and his alleged wife have their own shit coins. And now he's got the U.S. Treasury backing some shitcoin to increase the value of the shitcoin market, including his own.
As usual with this alleged administration, for every decision look to see where the trail of McNuggets lead back into his pocket. Trust nothing they or any of its "agencies" say or any "reports" they may feed to the corporate press. All their "data" must be considered suspect since the
Deja Vu! (Score:2)
So, 2028 will be the new 2008?
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Well, hopefully there will not be the corporate wellfare we had in 2008. The trend of the companies taking the profits, but taxepayers paying the costs should stop.
"Too big to fail" should not exist, the companies should just fail and their assets then sold on bankruptcy to be run by more comepetent people.
Re:Deja Vu! (Score:5, Insightful)
So, 2028 will be the new 2008?
You should be so lucky; more likely 1929.
the sting is at the end (Score:4, Interesting)
Yeah, any bank that loses it’s shirt in a crypto bust is gonna fail that requirement. I doubt the FDIC will hang any mainstreet depositors out to dry because some cryptobro stood up a “bank” and gambled with depositor money. But you can be sure that the cryptobro is gonna get a solid 25-year sentence in the cell right next to SBF.
But it might take years for those depositors to get their money back. Regulatory guardrails are being torn down. Fine. I get it. Let people and companies innovate. But you better choose your friends carefully or you’ll find youself on the next cryptobus that goes over the cliff.
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But you can be sure that the cryptobro is gonna get a solid 25-year sentence in the cell right next to SBF.
Depends. If SBF can access some of those overseas hidden funds, he should be able to purchase a presidential pardon based on what we're seeing now. With Trump in office, that's the moral of the story. Stash away enough stolen money to buy a get out of
jail free card.
If that bro only rips you and me off (Score:2)
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But it might take years for those depositors to get their money back.
They'll probably be offered 10-25 cents per dollar and be happy to cut their loss. And the FDIC can still claim all deposits were fully insured.
Pay the Tump (Score:4, Insightful)
Now foreign hostiles can pay-to-play directly into Trumps pockets. There's nothing stopping Vladimier Putin from buying $50B in Trump coin with Russian money to get even more of Trumps favor. Get Trump to withhold battlefield intelligence from the Ukraine, turn on NATO, isolate and dismantle 70 year old alliances... it's all for sale.
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Yes. We know. Old news. Now he's on to the new grift.
Wait for it... (Score:5, Interesting)
pitchforks and torches (Score:2)
Whew, bullet dodged (Score:4)
Well, as long as the FDIC "expects" banks to be good, I guess they always will. 'Cause that's never gone wrong. Problem solved. Good thing Crypto is super simple and super low-risk. /s :-)
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My guess is the "plan", if there is one, is that people who buy crypto will only sell it for more than they paid for it. Like all markets, the market price for crypto is set by willing sellers and willing buyers. If sellers only sell at a higher price, over time the market price is going to increase. As the price falls, the number of sellers able to sell at a higher price than they paid also falls.
Eventually the number of sellers declines to the point where there are very few sellers and there are buyers w
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The fatal flaw in your theory is that people that buy crypto don't ever need to sell the crypto for goods and services.
I think that is true for the vast majority of crypto holdings. I am sure there are people who are buying crypto with money they will someday really need. Just as there are people who play the lottery with the milk money. But I don't think those people hold enough to make any significant difference.
Stock goes to zero because the company goes out of business. Bonds go to zero because there is no one to pay either the interest or the principal. These things represent intrinsic value that no longer exists. W
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I agree with you that crypto has no intrinsic value. It is more like a collectable with no physical presence. I do believe it will go to zero. Its a fad, longer than I expected, but still a fad.
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I know several who have crypto and also need title loans and pawn shops.
Yes, but how much crypto do they own? And will they sell for a loss or go back to the pawn shop if they need money. I think the bulk of crypto is owned by people with pretty deep pockets who are unlikely to be forced to sell at a loss. If you set the capitalization of crypto based on what people paid for it, I don't think it would amount to much.
This is people gambling with paper money. To stay in the game there needs to be some exchange rate with real money. The gamble is on how that rate will change in th
Government Bailout (Score:2)
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The real things a dictator needs:
A professional army that will take orders.
During the civil war when Lincoln fired General McLellen who was popular with the army there were rumors about him leading a march on Washington to "save the union." One version of that story was he abandoned the idea when he was told that while the soldiers loved him, they loved the Republic more. That was why they had volunteered to begin with. They wou
I'm sure it'll be fine. (Score:3)
The banks will surely hold to practices that encourage reasonable growth and stability over risk.
To be clear, though, this one worries me. I've decided to pull up a chair, make some popcorn, and watch with more than a little schadenfreude as the US slowly implodes while the world realigns around them... but I'd rather their fiscal structures wait to break down until a better exchange medium is agreed upon. It's happening, but the collapse could move faster than the migration.
The short term will be bumpy, but I'm excited to see what emerges. I have friends who think it'll be an expansionist US unburdened by the need to governed by principles, but they are firing everybody who knows how to do anything, and installing incompetent folks as fast as they can find them. I'm less worried.
Fire sale - everything must go (Score:2)