"Notable cryptocurrency exit from FDIC official"

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FDIC Vice Chairman Travis Hill criticized the restrictions on banks' interactions with cryptocurrencies, emphasizing the need for more open and transparent regulations. Hill, who criticized the use of "Pause Letters" by federal regulators that stifle innovation, stated that clear guidelines regarding blockchain technology and digital assets should be provided.

A New Chapter in the Crypto World: Supportive Steps from the FDIC Front

Travis Hill, Vice Chairman of the U.S. Federal Deposit Insurance Corporation (FDIC), harshly criticized regulatory approaches that limit banks' interactions with the cryptocurrency sector. Hill particularly emphasized that the practice of "pause letters" negatively affects developments and innovations in blockchain technology.

Pause letters sent to various banks from March 2022 to May 2023 were also mentioned in the FDIC Inspector General's report. These letters requested banks to halt their crypto activities and provide additional information.

Having served at the FDIC since 2022, Hill argued that changes need to be made to the Bank Privacy Act, calling for a modification of the current law's structure that leads banks to close accounts. Hill also criticized the Chokepoint Operation, conducted by the Department of Justice in 2013, which restricted access to banking services for certain sectors.

Developments related to the issue gained further significance with Coinbase's lawsuit against the FDIC in June 2023. Coinbase accused the FDIC of attempting to sever the ties between the crypto sector and the banking system.

Hill's statements received support from Cardano founder Charles Hoskinson, while the newly appointed Crypto Czar David Sacks' promise to address banking restrictions resonated in political circles. The FDIC Vice Chairman emphasized that the institution's stance on digital assets should be more transparent.