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Bank Policy Institute Concerned About Weiss Ratings in FCC Programs

The Bank Policy Institute raised "serious concerns" about the FCC's use of the Weiss Bank's safety rating for programs that require support recipients to obtain a letter of credit. "By relying on Weiss ratings in its regulations, the FCC effectively…

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deputizes the organization to determine which banks may and may not provide letters of credit to carriers that participate in FCC programs," the group said, but Weiss "does not demonstrate the qualifications necessary for this responsibility." The group said in a letter posted Thursday in docket 17-182 that the Weiss rating system's methodology is "opaque" and the organization "appears to lack sufficient resources to adequately assess all of the institutions it purports to rate." It asked the FCC to eliminate the requirement, noting Weiss "regularly promotes crypto assets as an alternative to traditional banks on its official website."