#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 the previous practice of federal agencies using "cease and desist letters" to restrict banks from expanding crypto-related activities. He argued that this "bottleneck strategy" stifled innovation and gave 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 adopt a more "open attitude" towards 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 halt crypto-related activities. His statement suggests that the FDIC may be shifting its stance on cryptocurrencies and providing more support for the industry's development.