According to The Wall Street Journal, Travis Hill, the acting chairman of the Federal Deposit Insurance Corporation (FDIC) and a possible nominee for the head of the Washington Banking Institution, revealed a favorable attitude towards cryptocurrencies in a recent public speech. Hill hinted that he would encourage and protect the development of the cryptocurrency industry.
Encouraging FDIC to adopt an open attitude towards cryptocurrencies
According to the content of Hill’s speech provided by The Wall Street Journal, Hill clearly stated that the FDIC’s current approach to digital assets has “stifled innovation.” He believes that the FDIC should adopt a more open attitude towards the adoption of cryptocurrencies and blockchain technology, and provide clear guidance on what activities are allowed.
Hill also expressed his views on the issue of “de-banking,” stating that it is unacceptable for the FDIC to deprive Americans of access to banking services, including actions taken against cryptocurrency companies:
FDIC absolutely does not allow anyone, whether explicitly or implicitly, to demand that banks stop serving law-abiding customers.
De-banking refers to the restriction of financial services to specific industries. For example, some cryptocurrency companies have been denied services by banks in the past due to regulatory issues, including opening bank accounts, deposits, and transfers.
In addition to emphasizing the issues of cryptocurrencies and de-banking, Hill also responded to the following issues in his speech:
Banking regulation: Hill believes that FDIC examiners should avoid excessive focus on process-related issues, as this distracts regulatory agencies from reflecting on the reasons for the Silicon Valley bank failure in 2023. The focus of regulatory agencies should be on safety and soundness.
Capital requirements: Hill also stated that he does not want to repeat the mistakes of his predecessors. He supports a redesign of capital requirements, specifically, he does not intend to require banks to significantly increase capital reserves when facing an economic downturn.
Climate: Hill stated that the FDIC may not issue any quantitative or qualitative climate disclosure system for U.S. banks. He stated that the FDIC will withdraw from the Network for Greening the Financial System.
In summary, Hill revealed a lenient attitude towards banking regulation and support for emerging technologies as President-elect Trump is set to take office on January 20th.