The vice chairman of the Federal Deposit Insurance Corporation says the regulator needs “new leadership” — and he expects it to start later this month.
In new speech, Vice Chairman Travis Hill acknowledges that the FDIC sent “pause” letters to more than 20 banks, asking them to stop doing business with crypto companies – a revelation uncovered in a Freedom request of Information Act (FOIA) submitted by a digital asset. exchange Coinbase.
According to Paul Grewal, Coinbase’s chief legal officer, the unredacted documents showed a “coordinated effort” to shut down crypto activity in the United States.
Said Hill,
“I continue to think that a much better approach would have been – and remains – for agencies to clearly and transparently describe to the public what activities are legally permitted and how to conduct them in accordance with safety and soundness standards. And if regulatory approvals are required, they must be made in a timely manner, which has not been the case in recent years. »
Hill also criticized the regulator’s program to “debank” the US banking sector, meaning the deliberate closure or freezing of crypto companies’ bank accounts. Several prominent figures in the crypto field have declared themselves victims of this practice.
Hill says the right to a bank account should be fundamental in the modern economy.
“The problem of ‘debanking’ is closely linked to the agencies’ recent approach to digital assets. Over the past few years, various individual and business accounts associated with the crypto industry have lost access to their bank accounts without explanation. This follows a long history of other types of customers facing the problem of debanking, including politically disadvantaged business groups targeted by the initial Operation Choke Point, individuals associated with certain religious or political groups, and many others. ‘others.
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