#FDIC Vice Chair Backs Cryptocurrencies#

FDIC Vice Chairman Travis Hill, in a recent speech, called for a more open approach to cryptocurrencies and criticized the drawbacks of a "bottleneck strategy." He argued that the FDIC should be more open to technology and called for more guidance on digital assets. Hill's remarks came after some in the crypto industry expressed concern that the FDIC had asked financial institutions to pause crypto-related activities. He noted that in the past, federal agencies had used "cease and desist letters" to restrict banks from expanding crypto-related activities, hindering innovation and creating 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 hopes that the FDIC can become a driving force in the development of the crypto industry. Hill's remarks suggest that the FDIC is re-evaluating its stance on cryptocurrencies and may adopt more friendly policies towards the crypto industry in the future.