#FDIC Vice Chair Backs Cryptocurrencies#

FDIC Vice Chairman Travis Hill, in a recent speech, called for a more open approach to cryptocurrencies and criticized a "bottleneck strategy." He argued that the FDIC should be more open to technology and provide more guidance on digital assets. Hill's remarks came after some in the crypto industry expressed concern about the FDIC's request for financial institutions to pause crypto-related activities. Hill noted that past federal agency "cease and desist" letters limiting banks from expanding crypto-related activities had stifled innovation and created the impression that the FDIC was hindering blockchain technology. He called for an end to practices like "Operation Choke Point" and a reassessment of the implementation of the Bank Secrecy Act to reduce the phenomenon of banks closing accounts due to high penalties for non-compliance. Hill pledged to improve collaboration with crypto technology and said the FDIC would take a more open approach to cryptocurrencies. His remarks suggest that the FDIC is shifting its stance on cryptocurrencies and may provide more support for the development of the crypto industry.