#FDIC Vice Chair Backs Cryptocurrencies#

FDIC Vice Chairman Travis Hill recently delivered a speech calling for the agency to adopt a more open approach to cryptocurrencies and criticizing past federal agency actions that have restricted banks from expanding crypto-related activities through “cease and desist” letters. He argued that this “bottleneck strategy” has stifled innovation and created the perception that the FDIC is hindering blockchain technology. Hill 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. He pledged to improve collaboration with crypto technology and expects the FDIC to take a more “open approach” to technology, providing more guidance for digital assets. Hill’s remarks come after some in the crypto industry expressed concerns that the FDIC had asked financial institutions to pause crypto-related activities, and his statement could bring new development opportunities for the crypto industry.