#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 "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 that the FDIC had asked financial institutions to pause crypto-related activities. He noted that past federal agency "pause letters" restricting banks from expanding crypto-related activities had stifled innovation and created 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 fines for non-compliance. He pledged to improve collaboration with crypto technology and said the FDIC should play a more active role in regulating cryptocurrencies rather than simply taking restrictive measures. Hill's remarks suggest that the FDIC may be shifting its stance on cryptocurrencies and could adopt more friendly policies towards digital assets in the future.