Request for Information and Comment on Digital Assets, 27602-27603 [2021-10772]

Download as PDF 27602 Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices Request for Comment Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the FDIC’s functions, including whether the information has practical utility; (b) the accuracy of the estimates of the burden of the information collection, including the validity of the methodology and assumptions used; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. All comments will become a matter of public record. Dated at Washington, DC, this 18th day of May 2021. Federal Deposit Insurance Corporation James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2021–10754 Filed 5–20–21; 8:45 am] BILLING CODE 6714–01–P FEDERAL DEPOSIT INSURANCE CORPORATION RIN 3064–ZA25 Request for Information and Comment on Digital Assets Background Information Federal Deposit Insurance Corporation. ACTION: Request for information and comment. AGENCY: The Federal Deposit Insurance Corporation (FDIC) is gathering information and soliciting comments from interested parties regarding insured depository institutions’ (IDIs’) current and potential activities related to digital assets. The FDIC is interested in receiving input on current and potential digital asset use cases involving IDIs and their affiliates. DATES: Comments must be received by July 16, 2021. ADDRESSES: Commenters are encouraged to use the title ‘‘Request for Information and Comment on Digital Assets (RIN 3064–ZA25)’’ and to identify the number of the specific question(s) for comment to which they are responding. Please send comments by one method only directed to: • Agency Website: https:// www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the agency’s website. • Email: Comments@fdic.gov. Include RIN 3064–ZA25 in the subject line of the message. jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:15 May 20, 2021 Jkt 253001 • Mail: James P. Sheesley, Assistant Executive Secretary, Attention: Comments-RIN 3064–ZA25, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. • Hand Delivery/Courier: Comments may be hand-delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street) on business days between 7:00 a.m. and 5:00 p.m., ET. Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/ laws/federal/—including any personal information provided—for public inspection. Paper copies of public comments may be ordered from the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226 or by telephone at (877) 275–3342 or (703) 562–2200. FOR FURTHER INFORMATION CONTACT: RaeAnn Miller, Senior Deputy Director, Supervisory Examinations and Policy, Division of Risk Management Supervision, (202) 898–3898, rmiller@ fdic.gov; Jonathan Miller, Deputy Director, Division of Depositor and Consumer Protection, 202–898–3587, jonmiller@fdic.gov; or C. Chris Ledoux, Corporate Expert, Financial Innovation and Technology Group, Legal Division, 202–898–3535, cledoux@fdic.gov. SUPPLEMENTARY INFORMATION: FDIC Overview The FDIC is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. The FDIC works to maintain the strength of the U.S. financial sector through effective supervision of regulated financial institutions, consumer protection, the resolution of failed financial institutions, and the provision of deposit insurance.1 In its capacity as a federal banking regulator and deposit insurer, among other functions, the FDIC examines and supervises institutions’ safe and sound operations and compliance with laws and regulations, evaluates resolution plans of large financial institutions, maintains 1 As of December 31, 2020, the FDIC insured 5,001 insured commercial banks and savings institutions. The FDIC is the primary federal regulator of state-chartered banks and savings associations that are not members of the Federal Reserve System. As of December 31, 2020, the FDIC supervised approximately 3,221 banks and savings associations. The FDIC also has a back-up supervision and examination role with respect to insured depository institutions for which the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System are the primary federal regulators. See https:// www.fdic.gov/bank/analytical/qbp/2020dec/. PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 the Deposit Insurance Fund (DIF), and resolves failed IDIs.2 Collectively, the FDIC’s activities support a safe-andsound banking sector and contribute to the stability of and public confidence in the U.S. financial system as a whole. In addition to its individual responsibilities, the FDIC works cooperatively with its fellow state and federal banking regulators to strengthen the banking sector and the U.S. financial system, including through a number of interagency formal structures, joint rule making and examinations. Current and Potential Digital Assets Use Cases One area of new technology and innovation surrounds the use of digital assets in financial markets and intermediation, as well as with settlement and payment systems. Banks are increasingly exploring several roles in the emerging digital asset ecosystem, such as being custodians, reserve holders, issuers, and exchange or redemption agents; performing node functions; and holding digital asset issuers’ money deposits. Digital asset use cases and related activities may fall into one or more broad categories: • Technology solutions, such as those involving closed and open payment systems, other token-based systems for banking activities other than payments (e.g., lending), and acting as nodes in networks (e.g., distributed ledgers). • Asset-based activities, such as investments, collateral, margin lending and liquidity facilities. • Liability-based activities, such as deposit services and where deposits serve as digital asset reserves. • Custodial activities, such as providing digital asset safekeeping and related services, such as secondary lending, as well as acting as a qualified custodian on behalf of investment advisors. • Other activity that does not align with the others above. Examples could include market-making and decentralized financing. Request for Comment The FDIC recognizes that there are novel and unique considerations related to digital assets, and this RFI is intended to help inform the FDIC’s understanding in this area. The FDIC is seeking input on current and potential use cases involving IDIs and their affiliates and 2 ‘‘Insured depository institution’’ means any bank or savings association the deposits of which are insured by the FDIC pursuant to the Federal Deposit Insurance Act (FDI Act). See 12 U.S.C. 1813(c). E:\FR\FM\21MYN1.SGM 21MYN1 Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices risk and compliance management in conducting such activities. Questions Regarding Current and Potential Use Cases 1. In addition to the broad categories of digital assets and related activities described above, are there any additional or alternative categories or subcategories that IDIs are engaged in or exploring? 2. What, if any, activities or use cases related to digital assets are IDIs currently engaging in or considering? Please explain, including the nature and scope of the activity. More specifically: a. What, if any, types of specific products or services related to digital assets are IDIs currently offering or considering offering to consumers? b. To what extent are IDIs engaging in or considering engaging in activities or providing services related to digital assets that are custodial in nature, and what are the scope of those activities? To what extent are such IDIs engaging in or considering secondary lending? c. To what extent are IDIs engaging in or considering activities or providing services related to digital assets that have direct balance sheet impacts? d. To what extent are IDIs engaging in or considering activities related to digital assets for other purposes, such as to facilitate internal operations? 3. In terms of the marketplace, where do IDIs see the greatest demand for digital asset-related services, and who are the largest drivers for such services? jbell on DSKJLSW7X2PROD with NOTICES Questions Regarding Risk and Compliance Management 4. To what extent are IDIs’ existing risk and compliance management frameworks designed to identify, measure, monitor, and control risks associated with the various digital asset use cases? Do some use cases more easily align with existing risk and compliance management frameworks compared to others? Do, or would, some use cases result in IDIs developing entirely new or materially different risk and compliance management frameworks? 5. What unique or particular risks are challenging to measure, monitor, and control for the various digital asset use cases? What unique controls or processes are or could be implemented to address such risks? 6. What unique benefits to operations do IDIs consider as they analyze various digital asset use cases? 7. How are IDIs integrating, or how would IDIs integrate, operations related to digital assets with legacy banking systems? VerDate Sep<11>2014 17:15 May 20, 2021 Jkt 253001 27603 8. Please identify any potential benefits, and any unique risks, of particular digital asset product offerings or services to IDI customers. 9. How are IDIs integrating these new technologies into their existing cybersecurity functions? Dated at Washington, DC, on May 17, 2021. James P. Sheesley, Assistant Executive Secretary. Questions Regarding Supervision and Activities FEDERAL ELECTION COMMISSION 10. Are there any unique aspects of digital asset activities that the FDIC should take into account from a supervisory perspective? 11. Are there any areas in which the FDIC should clarify or expand existing supervisory guidance to address digital asset activities? 12. In what ways, if any, does custody of digital assets differ from custody of traditional assets? 13. FDIC’s part 362 application procedures may apply to certain digital asset activities or investments.3 Is additional clarity needed? Would any changes to FDIC’s regulations or the related application filing procedures be helpful in addressing uncertainty surrounding the permissibility of particular types of digital asset-related activity, in order to support IDIs considering or engaging in such activities? Questions Regarding Deposit Insurance and Resolution 14. Are there any steps the FDIC should consider to ensure customers can distinguish between uninsured digital asset products on the one hand, and insured deposits on the other? 15. Are there distinctions or similarities between fiat-backed stablecoins and stored value products where the underlying funds are held at IDIs and for which pass-through deposit insurance may be available? 16. If the FDIC were to encounter any of the digital assets use cases in the resolution process or in a receivership capacity, what complexities might be encountered in valuing, marketing, transferring, operating, or resolving the digital asset activity? What actions should be considered to overcome the complexities? Additional Considerations 17. Comments are invited to address any other digital asset-related information stakeholders seek to bring to the FDIC’s attention. Comments are also welcome about the digital assetrelated activities of uninsured banks and nonbanks. Federal Deposit Insurance Corporation. 3 See PO 00000 12 CFR part 362, subpart A. Frm 00052 Fmt 4703 Sfmt 4703 [FR Doc. 2021–10772 Filed 5–20–21; 8:45 am] BILLING CODE 6714–01–P [NOTICE 2021–10] Filing Dates for the Texas Special Election in the 6th Congressional District Special Election Federal Election Commission. Notice of filing dates for special election. AGENCY: ACTION: Texas has scheduled a Special Runoff Election on July 27, 2021, to fill its U.S. House of Representatives seat in the 6th Congressional District of the late Representative Ron Wright. On May 1, 2021, a Special General Election was held, with no candidate achieving a majority vote. Under Texas law, a Special Runoff Election will now be held between the top two vote-getters. Committees participating in the Texas Special Runoff Election are required to file pre- and post-runoff election reports. FOR FURTHER INFORMATION CONTACT: Ms. Elizabeth S. Kurland, Information Division, 1050 First Street NE, Washington, DC 20463; Telephone: (202) 694–1100; Toll Free (800) 424– 9530. SUPPLEMENTARY INFORMATION: SUMMARY: Principal Campaign Committees All principal campaign committees of candidates who participate in the Texas Special Runoff Election shall file a 12day Pre-Runoff Report on July 15, 2021, and a 30-day Post-Runoff Report on August 26, 2021. (See charts below for the closing date for each report.) Note that these reports are in addition to the campaign committee’s regular quarterly filings. (See charts below for the closing date for each report). Unauthorized Committees (PACs and Party Committees) Political committees not filing monthly in 2021 are subject to special election reporting if they make previously undisclosed contributions or expenditures in connection with the Texas Special Runoff Election by the close of books for the applicable report(s). (See charts below for the closing date for each report.) Committees filing monthly that make contributions or expenditures in connection with the Texas Special Runoff Election will continue to file E:\FR\FM\21MYN1.SGM 21MYN1

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[Federal Register Volume 86, Number 97 (Friday, May 21, 2021)]
[Notices]
[Pages 27602-27603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10772]


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FEDERAL DEPOSIT INSURANCE CORPORATION

RIN 3064-ZA25


Request for Information and Comment on Digital Assets

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Request for information and comment.

-----------------------------------------------------------------------

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is gathering 
information and soliciting comments from interested parties regarding 
insured depository institutions' (IDIs') current and potential 
activities related to digital assets. The FDIC is interested in 
receiving input on current and potential digital asset use cases 
involving IDIs and their affiliates.

DATES: Comments must be received by July 16, 2021.

ADDRESSES: Commenters are encouraged to use the title ``Request for 
Information and Comment on Digital Assets (RIN 3064-ZA25)'' and to 
identify the number of the specific question(s) for comment to which 
they are responding. Please send comments by one method only directed 
to:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the 
agency's website.
     Email: [email protected]. Include RIN 3064-ZA25 in the 
subject line of the message.
     Mail: James P. Sheesley, Assistant Executive Secretary, 
Attention: Comments-RIN 3064-ZA25, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.
     Hand Delivery/Courier: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street NW building 
(located on F Street) on business days between 7:00 a.m. and 5:00 p.m., 
ET.
    Public Inspection: All comments received will be posted without 
change to https://www.fdic.gov/regulations/laws/federal/--including any 
personal information provided--for public inspection. Paper copies of 
public comments may be ordered from the FDIC Public Information Center, 
3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226 or by 
telephone at (877) 275-3342 or (703) 562-2200.

FOR FURTHER INFORMATION CONTACT: Rae-Ann Miller, Senior Deputy 
Director, Supervisory Examinations and Policy, Division of Risk 
Management Supervision, (202) 898-3898, [email protected]; Jonathan 
Miller, Deputy Director, Division of Depositor and Consumer Protection, 
202-898-3587, [email protected]; or C. Chris Ledoux, Corporate Expert, 
Financial Innovation and Technology Group, Legal Division, 202-898-
3535, [email protected].

SUPPLEMENTARY INFORMATION:

Background Information

FDIC Overview

    The FDIC is an independent agency created by the Congress to 
maintain stability and public confidence in the nation's financial 
system. The FDIC works to maintain the strength of the U.S. financial 
sector through effective supervision of regulated financial 
institutions, consumer protection, the resolution of failed financial 
institutions, and the provision of deposit insurance.\1\ In its 
capacity as a federal banking regulator and deposit insurer, among 
other functions, the FDIC examines and supervises institutions' safe 
and sound operations and compliance with laws and regulations, 
evaluates resolution plans of large financial institutions, maintains 
the Deposit Insurance Fund (DIF), and resolves failed IDIs.\2\ 
Collectively, the FDIC's activities support a safe-and-sound banking 
sector and contribute to the stability of and public confidence in the 
U.S. financial system as a whole.
---------------------------------------------------------------------------

    \1\ As of December 31, 2020, the FDIC insured 5,001 insured 
commercial banks and savings institutions. The FDIC is the primary 
federal regulator of state-chartered banks and savings associations 
that are not members of the Federal Reserve System. As of December 
31, 2020, the FDIC supervised approximately 3,221 banks and savings 
associations. The FDIC also has a back-up supervision and 
examination role with respect to insured depository institutions for 
which the Office of the Comptroller of the Currency and the Board of 
Governors of the Federal Reserve System are the primary federal 
regulators. See https://www.fdic.gov/bank/analytical/qbp/2020dec/.
    \2\ ``Insured depository institution'' means any bank or savings 
association the deposits of which are insured by the FDIC pursuant 
to the Federal Deposit Insurance Act (FDI Act). See 12 U.S.C. 
1813(c).
---------------------------------------------------------------------------

    In addition to its individual responsibilities, the FDIC works 
cooperatively with its fellow state and federal banking regulators to 
strengthen the banking sector and the U.S. financial system, including 
through a number of interagency formal structures, joint rule making 
and examinations.

Current and Potential Digital Assets Use Cases

    One area of new technology and innovation surrounds the use of 
digital assets in financial markets and intermediation, as well as with 
settlement and payment systems. Banks are increasingly exploring 
several roles in the emerging digital asset ecosystem, such as being 
custodians, reserve holders, issuers, and exchange or redemption 
agents; performing node functions; and holding digital asset issuers' 
money deposits.
    Digital asset use cases and related activities may fall into one or 
more broad categories:
     Technology solutions, such as those involving closed and 
open payment systems, other token-based systems for banking activities 
other than payments (e.g., lending), and acting as nodes in networks 
(e.g., distributed ledgers).
     Asset-based activities, such as investments, collateral, 
margin lending and liquidity facilities.
     Liability-based activities, such as deposit services and 
where deposits serve as digital asset reserves.
     Custodial activities, such as providing digital asset 
safekeeping and related services, such as secondary lending, as well as 
acting as a qualified custodian on behalf of investment advisors.
     Other activity that does not align with the others above. 
Examples could include market-making and decentralized financing.

Request for Comment

    The FDIC recognizes that there are novel and unique considerations 
related to digital assets, and this RFI is intended to help inform the 
FDIC's understanding in this area. The FDIC is seeking input on current 
and potential use cases involving IDIs and their affiliates and

[[Page 27603]]

risk and compliance management in conducting such activities.
Questions Regarding Current and Potential Use Cases
    1. In addition to the broad categories of digital assets and 
related activities described above, are there any additional or 
alternative categories or subcategories that IDIs are engaged in or 
exploring?
    2. What, if any, activities or use cases related to digital assets 
are IDIs currently engaging in or considering? Please explain, 
including the nature and scope of the activity. More specifically:
    a. What, if any, types of specific products or services related to 
digital assets are IDIs currently offering or considering offering to 
consumers?
    b. To what extent are IDIs engaging in or considering engaging in 
activities or providing services related to digital assets that are 
custodial in nature, and what are the scope of those activities? To 
what extent are such IDIs engaging in or considering secondary lending?
    c. To what extent are IDIs engaging in or considering activities or 
providing services related to digital assets that have direct balance 
sheet impacts?
    d. To what extent are IDIs engaging in or considering activities 
related to digital assets for other purposes, such as to facilitate 
internal operations?
    3. In terms of the marketplace, where do IDIs see the greatest 
demand for digital asset-related services, and who are the largest 
drivers for such services?
Questions Regarding Risk and Compliance Management
    4. To what extent are IDIs' existing risk and compliance management 
frameworks designed to identify, measure, monitor, and control risks 
associated with the various digital asset use cases? Do some use cases 
more easily align with existing risk and compliance management 
frameworks compared to others? Do, or would, some use cases result in 
IDIs developing entirely new or materially different risk and 
compliance management frameworks?
    5. What unique or particular risks are challenging to measure, 
monitor, and control for the various digital asset use cases? What 
unique controls or processes are or could be implemented to address 
such risks?
    6. What unique benefits to operations do IDIs consider as they 
analyze various digital asset use cases?
    7. How are IDIs integrating, or how would IDIs integrate, 
operations related to digital assets with legacy banking systems?
    8. Please identify any potential benefits, and any unique risks, of 
particular digital asset product offerings or services to IDI 
customers.
    9. How are IDIs integrating these new technologies into their 
existing cybersecurity functions?
Questions Regarding Supervision and Activities
    10. Are there any unique aspects of digital asset activities that 
the FDIC should take into account from a supervisory perspective?
    11. Are there any areas in which the FDIC should clarify or expand 
existing supervisory guidance to address digital asset activities?
    12. In what ways, if any, does custody of digital assets differ 
from custody of traditional assets?
    13. FDIC's part 362 application procedures may apply to certain 
digital asset activities or investments.\3\ Is additional clarity 
needed? Would any changes to FDIC's regulations or the related 
application filing procedures be helpful in addressing uncertainty 
surrounding the permissibility of particular types of digital asset-
related activity, in order to support IDIs considering or engaging in 
such activities?
---------------------------------------------------------------------------

    \3\ See 12 CFR part 362, subpart A.
---------------------------------------------------------------------------

Questions Regarding Deposit Insurance and Resolution
    14. Are there any steps the FDIC should consider to ensure 
customers can distinguish between uninsured digital asset products on 
the one hand, and insured deposits on the other?
    15. Are there distinctions or similarities between fiat-backed 
stablecoins and stored value products where the underlying funds are 
held at IDIs and for which pass-through deposit insurance may be 
available?
    16. If the FDIC were to encounter any of the digital assets use 
cases in the resolution process or in a receivership capacity, what 
complexities might be encountered in valuing, marketing, transferring, 
operating, or resolving the digital asset activity? What actions should 
be considered to overcome the complexities?
Additional Considerations
    17. Comments are invited to address any other digital asset-related 
information stakeholders seek to bring to the FDIC's attention. 
Comments are also welcome about the digital asset-related activities of 
uninsured banks and nonbanks.

Federal Deposit Insurance Corporation.
    Dated at Washington, DC, on May 17, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-10772 Filed 5-20-21; 8:45 am]
BILLING CODE 6714-01-P