#FDIC Vice Chair Backs Cryptocurrencies#
Hot Topic Overview
Overview
FDIC Vice Chairman Travis Hill recently delivered a speech calling for the agency to adopt a more open approach to cryptocurrencies. He criticized the FDIC's previous "bottleneck strategy," which used "cease and desist letters" to restrict banks from expanding crypto-related activities. He argued that this approach stifled innovation and gave the impression that the FDIC was hindering blockchain technology. Hill called for an end to practices similar to "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 fines 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.
Ace Hot Topic Analysis
Analysis
FDIC Vice Chairman Travis Hill recently delivered a speech calling for the agency to take a more open approach to cryptocurrencies, criticizing its previous “bottleneck strategy.” He argued that the FDIC should provide more guidance on digital assets and end practices like “Operation Choke Point,” which used “cease and desist” letters to restrict banks from expanding crypto-related activities. Hill pointed out that this practice stifled innovation and gave the impression that the FDIC was hindering blockchain technology. He believes that the implementation of the Bank Secrecy Act should be reassessed to reduce the phenomenon of banks closing accounts due to high fines for non-compliance. Hill’s remarks came after some in the crypto industry expressed concerns that the FDIC had been asking financial institutions to halt crypto-related activities. He pledged to improve the way the agency works with crypto technology and said the FDIC will take a more “open approach” to technology.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC should take a more open approach to cryptocurrencies, rather than a 'bottleneck' strategy.
FDIC should provide more guidance on digital assets to reduce the number of banks closing accounts due to compliance failures and facing hefty fines.
FDIC should end practices like 'Operation Choke Point' to promote innovation in the crypto industry.
FDIC should re-evaluate the implementation of the Bank Secrecy Act to reduce the number of banks closing accounts due to compliance failures and facing hefty fines.