FDIC Letter Requests Crypto Activity Details by July 15

Federal Deposit Insurance Corporation
Division of Risk Management Supervision
Chicago Regional Office
300 South Riverside Plaza, Suite 1700
Chicago, IL 60606
Telephone: (312) 382-7500
Fax: (312) 382-6901

May 31, 2022

Board of Directors
XXXXX

Members of the Board:

We have received your correspondence dated May 9, 2022 and submitted by Executive Vice President XXXXX regarding the Banks’ cryptocurrency activities. Upon review of the correspondence we would like to request the following information for further review:

• XXXXX Questionnaire
• Updated risk assessment, including digital asset risk assessment
• XXXXX Policy
• Procedures related to holding cryptocurrency in a directed trust

Additionally, please provide further details regarding the account containing cryptocurrency currently being held by the Wealth Management Department. Specifically, notate the cryptocurrency being held and if the Bank has any investment authority or responsibility for the cryptocurrency. Also, describe the controls utilized to maintain the security of the private key/password of the cryptocurrency held in trust. In addition, describe any plans for third party partnerships related to current or expected cryptocurrency activities. Lastly, provide details on any cryptocurrency insurance coverage that the institution has obtained.

Please provide the requested information by July 15, 2022. If an item is in-process of being completed, report the expected completion date in the correspondence and provide upon completion. Information can be mailed to the addresses located in the letterhead or may be sent via the FDIC Secure Email Portal at XXXXX@FDIC.gov and to XXXXX. Contact FDIC Case Manager XXXXX or XXXXX at XXXXX or XXXXX with any questions or comments.

Sincerely,

Regina L. Hayes
Assistant Regional Director
Federal Deposit Insurance Corporation

cc: Federal Reserve Bank of Cleveland

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