“If the access is granted, these institutions may introduce increased risks to the financial system,” according to the minutes of the meeting. SPDIs, the document noted, “hold uninsured dollar deposits. The deposits will be backed by 100% reserves, and the funds on deposit cannot be loaned by the bank. This structure allows those SPDIs to avoid Federal Deposit Insurance Corporation (FDIC) and Bank Holding Company Act (BHCA) supervision.”
Caitlin Long’s Wyoming Crypto Bank Takes a Step Toward Fed Membership
