#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, criticizing its previous "bottleneck strategy." He believes the FDIC should provide more guidance on digital assets and end practices like "Operation Choke Point" to reduce the number of banks closing accounts due to insufficient compliance. Hill pointed out that past federal agencies' use of "pause letters" to restrict banks from expanding crypto-related activities has hindered innovation and created the impression that the FDIC is hindering blockchain technology. He pledged to improve collaboration with crypto technology and reassess the implementation of the Bank Secrecy Act to reduce the number of banks closing accounts due to high fines for insufficient compliance. Hill's remarks come after some in the crypto industry expressed concerns that the FDIC had asked financial institutions to pause crypto-related activities. His speech suggests that the FDIC may be shifting its stance on cryptocurrencies and could provide more support for the industry's development.