#FDIC Vice Chair Backs Cryptocurrencies#

FDIC Vice Chairman Travis Hill, in a recent speech, called for a more open approach to cryptocurrencies and criticized a "bottleneck strategy." He argued that the FDIC should be more open to technology and provide more guidance on digital assets. Hill's remarks came after some in the crypto industry expressed concern about the FDIC's request for financial institutions to pause crypto-related activities. He noted that past federal agency "pause letters" limiting banks from expanding crypto-related activities have stifled innovation and created 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 penalties for non-compliance. He pledged to improve collaboration with crypto technology and said the FDIC will provide more guidance on digital assets to promote the healthy development of the crypto industry.