#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 the past practice of federal agencies using "pause letters" to restrict banks from expanding crypto-related activities. He argued that this "bottleneck strategy" stifled innovation and created the impression that the FDIC was 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 the technology, providing more guidance for digital assets. Hill's remarks came after some in the crypto industry expressed concerns that the FDIC had been asking financial institutions to pause crypto-related activities. His statement is seen as a signal of a shift in the FDIC's attitude towards cryptocurrencies and has brought new hope for the development of the crypto industry.