US lawmakers urge Federal Deposit Insurance Corporation (FDIC) to implement clearer regulations on digital assets

According to News.bitcoin, House Financial Services Committee Chairman French Hill, along with Representatives Dan Meuser, Andy Barr, and Bryan Steil, are urging the Federal Deposit Insurance Corporation (FDIC) to implement clearer regulations on digital assets. In a letter to Acting FDIC Chairman Travis Hill, lawmakers expressed concerns about federal regulators forcing banks to refuse services to cryptocurrency related businesses, a practice known as "account closure. Legislators have put forward five key recommendations for the FDIC. Firstly, they urge the institution to require all banking supervision guidance to be written and made public to prevent the use of informal instructions that are only verbal. Secondly, they call on financial institutions to provide clear reasons when closing customer accounts, ensuring greater accountability while complying with the Bank Secrecy Law. Thirdly, they advocate for the removal of "reputation risk" as a regulatory factor, pointing out its misuse to justify unfair banking restrictions. Fourthly, they suggest conducting an external review of all supervisory guidance to balance regulatory benefits and the impact on financial access. Finally, they emphasized that all regulations should be uniformly applied to all financial institutions to prevent selective enforcement.