tl;dr
FDIC interim Chair Travis Hill addressed concerns over the "debanking" of crypto firms, calling it "unacceptable" and inconsistent with the agency's mission. He criticized the FDIC's cautious approach to crypto and urged for clear guidance on permissible activities. Hill also highlighted the broader...
During a speech in St. Louis on Jan. 10, FDIC interim Chair Travis Hill acknowledged the agency's part in "debanking" crypto firms, criticizing it as "unacceptable" and inconsistent with the agency's mission
Hill urged for clearer guidance on permissible crypto activities and highlighted compliance challenges under the Bank Secrecy Act
Hill also advocated for a balanced approach to bank supervision, emphasizing the need for modernizing FDIC's policies to match the evolving financial landscape
Nic Carter, co-founder of Coin Metrics, viewed Hill's admission as a "massive sea change" at the agency and anticipates substantial changes with the upcoming leadership transition on Jan. 20
Hill further criticized the FDIC's cautious approach to crypto, pointing out the agency's issuance of "pause" letters to banks to halt crypto-related activities, fostering the perception of hostility toward blockchain technologies
Hill called for a reset of the agency's digital asset strategy, urging transparent guidance on permissible activities to avoid piecemeal enforcement actions
Additionally, Hill discussed the broader implications of regulatory oversight on crypto-related activities under the Bank Secrecy Act, calling for a reevaluation of the regime to prevent harm to law-abiding customers
As the leadership transition approaches, Hill emphasized the need for a balanced approach to bank supervision and suggested revitalizing the agency's innovation lab, FDiTech, to foster collaboration with the fintech industry