Federal Deposit Insurance Corp. (FDIC) will soon come under the Trump administration. Veteran Republican Travis Hill, while serving as FDIC Deputy Chairman, made some suggestions on cryptocurrency policies.
Guidance Request for Crypto Assets
Hill demands the US banking regulator provide new guidance on digital assets. He noted that the current individual evaluation approach is insufficient to guide banks’ crypto relationships.
“This approach has stifled innovation and contributed to the public perception that the FDIC is closed to institutions interested in blockchain or distributed ledger technology.
Additionally, during the Freedom of Information Act fight, Coinbase Inc. He drew attention to the controversial letters obtained through. These letters confirmed that crypto and some sectors’ access to banks was restricted.
The Importance of Regulation and Approval Processes
“A far better approach would be for agencies to clearly and transparently define legally permissible activities to the public and explain how they conduct them in accordance with safety and integrity standards,” Hill said. He also said, “If regulatory approvals are needed, they need to be done in a timely manner, which has not been the case in recent years.”
Hill, who was appointed to the board as a Republican two years ago, also criticized the FDIC’s role in discouraging banks from crypto customers.
“The FDIC’s long-term goal is to reduce the number of unbanked people. “Efforts to alienate regulated customers from banks are unacceptable, regulators must work to end it, and the FDIC should not have a duty to overtly or covertly force banks to stop serving legitimate customers.”
Current President Martin Gruenberg previously announced that he will leave his post on January 19. With Gruenberg’s departure, which will occur one day before the Trump term begins, Vice President Travis Hill will assume the interim presidency.
This management change at the FDIC may be important for the future of the cryptocurrency industry. The decisions taken by the new administration may shape the place of crypto assets in the banking system.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
