FDIC’s New Management to Chart a New Course for Crypto Policy
Travis Hill Outlines Pro-Crypto Policy Thoughts Ahead of Taking Over
The Federal Deposit Insurance Corp. (FDIC) is set to undergo a change in leadership, with Travis Hill, the current Vice Chairman, expected to take over the reins. In a recent speech, Hill outlined his thoughts on pro-crypto policy, calling for the FDIC to issue new guidance for digital assets.
FDIC’s Current Approach to Crypto
Hill criticized the FDIC’s current approach to cryptocurrency, stating that it has stifled innovation and contributed to a public perception that the agency is closed for business if institutions are interested in blockchain or distributed ledger technology. He pointed to the “pause” letters sent to banks, which he believes have steered many institutions away from digital assets business lines.
A Clearer Approach Needed
Hill suggested that a clearer and more transparent approach would be beneficial, with the agency clearly describing what activities are legally permissible and how to conduct them in accordance with safety and soundness standards. He also emphasized the need for regulatory approvals to be acted upon in a timely manner, which has not been the case in recent years.
Debanking Law-Abiding Customers
Hill also criticized the FDIC’s role in pressuring banks to shed crypto clients, stating that this approach is unacceptable and goes against the agency’s goal of decreasing the number of unbanked individuals. He emphasized that regulators must work to end debanking and that there is no place at the FDIC for anyone who has pushed banks to stop serving law-abiding customers.
Conclusion
Travis Hill’s comments suggest that the FDIC is poised to take a more pro-crypto approach under his leadership. With a focus on clarity, transparency, and timely regulatory approvals, the agency may be able to foster greater innovation and adoption of digital assets in the banking system.
FAQs
Q: What is the current approach of the FDIC to cryptocurrency?
A: The FDIC’s current approach to cryptocurrency has been criticized for stifling innovation and contributing to a public perception that the agency is closed for business if institutions are interested in blockchain or distributed ledger technology.
Q: What is the “pause” letter sent to banks?
A: The “pause” letter is a communication sent by the FDIC to banks, instructing them to halt their cryptocurrency-related activities. Hill believes that these letters have steered many institutions away from digital assets business lines.
Q: What is the goal of the FDIC’s efforts to decrease the number of unbanked individuals?
A: The goal of the FDIC’s efforts is to increase financial inclusion by decreasing the number of individuals who are unbanked. However, Hill believes that the agency’s approach to cryptocurrency has had the opposite effect, leading to the debanking of law-abiding customers.
Q: What is the significance of Travis Hill’s comments on pro-crypto policy?
A: Hill’s comments suggest that the FDIC is poised to take a more pro-crypto approach under his leadership. With a focus on clarity, transparency, and timely regulatory approvals, the agency may be able to foster greater innovation and adoption of digital assets in the banking system.
