#FDIC Vice Chair Backs Cryptocurrencies#

FDIC Vice Chairman Travis Hill recently gave a speech calling for the agency to take a more open approach to cryptocurrencies and criticizing a "bottleneck strategy." He argued that the FDIC's past use of "cease and desist letters" to restrict banks from expanding crypto-related activities has stifled innovation and given the impression that the FDIC is 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 fines for insufficient compliance. He pledged to improve collaboration with crypto technology and expects the FDIC to take a more "open approach" to the technology, calling 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. His speech suggests that the FDIC may be shifting its stance on cryptocurrencies and could provide more support for the industry.