#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 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 created the perception 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 compliance shortcomings. 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. Hill's remarks came after some in the crypto industry expressed concerns that the FDIC had been asking financial institutions to cease crypto-related activities. His shift in attitude is seen as a positive signal for the crypto industry, indicating that the FDIC is working to build a closer relationship with the sector.