The post FDIC’s Travis Hill Advocates for Clearer Crypto Banking Guidelines and Eases on Restrictive Practices appeared on BitcoinEthereumNews.com.

FDIC Vice Chair Travis Hill recently criticized restrictive measures impacting the crypto banking sector, calling for reform and clearer guidelines. His remarks highlight ongoing tensions between regulatory authorities and the burgeoning cryptocurrency industry, emphasizing the need for innovation-friendly policies. “We must ensure that the regulatory framework fosters innovation while preserving financial stability,” Hill stated, reflecting the need for a balanced approach. FDIC Vice Chair Travis Hill calls for reforms on restrictive crypto banking practices while emphasizing the need for a supportive regulatory framework. Calls to End Restrictive Banking Practices Like Operation Chokepoint In his recent address, Hill urged for the cessation of practices akin to “Operation Chokepoint,” which historically pressured financial organizations to sever ties with certain sectors. He argued that such actions create barriers for banks wishing to engage in crypto-related activities. Emphasizing consumer protection and innovation, he recommended an overhaul of regulations that could open doors for collaborative ventures between traditional banking and the crypto realm. Additionally, he advocated for revising the enforcement mechanisms tied to the Bank Secrecy Act, suggesting a shift to support rather than obstruct banks pursuing crypto partnerships. Hill’s objective comprises enhancing the dialogue between regulators and industry representatives to establish a more conducive environment for digital asset services. “Regulators must stop stifling innovation through ambiguity and punitive measures,” Hill said, urging a balance between risk management and progressive engagement with the rapidly evolving crypto landscape. Push for Clearer Crypto Guidelines The recent findings of the FDIC’s Office of Inspector General shed light on the use of “pause letters” sent to banks to interfere with their cryptocurrency operations. This tactic, which prompted financial institutions to halt crypto activities on request, lacked transparency and definitive guidelines on compliance, leading to unnecessary confusion and constricted growth within the sector. Furthermore, Hill remarked that the method of…

---

Filed under: News - @ January 11, 2025 1:25 am