FDIC Vice Chairman Calls for Clear, Transparent Cryptocurrency Regulation After Trump’s Inauguration
The Federal Deposit Insurance Corporation’s vice president says the regulator needs a “new direction” — and he expects it to begin later this month.
In new letterVice Chairman Travis Hill acknowledged that the FDIC sent “pause” letters to more than 20 banks, asking them to stop doing business with cryptocurrency companies — a finding made through a Freedom of Information Act (FOIA) request. Provided by digital asset exchange Coinbase.
According to Paul Grewal, chief legal officer at Coinbase, the unredacted documents showed a “coordinated effort” to shut down cryptocurrency activity in the United States.
Hill says,
“I still believe that a much better approach would have been – and still is – for agencies to clearly and transparently describe to the public what activities are legally permissible and how to carry them out according to safety and soundness standards. If regulatory approvals are needed, they should be acted upon in a timely manner, which is Which has not been the case in recent years.
Hill also criticized the US banking industry’s agenda of “bank unbundling,” or the deliberate closing or freezing of cryptocurrency companies’ bank accounts. Many prominent figures in the cryptocurrency space have claimed to be victims of this practice.
Hill says the right to a bank account should be the foundation of the modern economy.
“The ‘unbanked’ issue is closely linked to the agencies’ recent approach to digital assets. Over the past few years, there have been various accounts of individuals and companies associated with the cryptocurrency industry that have lost access to bank accounts without explanation. This comes after a long history Other types of customers who suffer from debanking include politically unfavorable business groups targeted by the original Operation Choke Point, individuals associated with particular religious or political groups, and many others.
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