- FDIC signals a potential shift from debanking tactics and "pause letters."
- Vice Chair Travis Hill targets innovation and deregulation in the FDIC's new policy approach.
The Federal Deposit Insurance Corporation could set an entirely new course under the upcoming administration.
Vice Chairman Travis Hill recently outlined plans to address contentious cryptocurrency and banking access issues.
Hill, a potential candidate to lead the agency full-time, has criticised the FDIC’s approach to digital assets and the so-called “debanking” of crypto-related firms, signalling a possible end to practices likened to “Operation Choke Point.”
In remarks delivered on 10 January, Hill condemned the FDIC’s past issuance of “pause letters,” which effectively barred banks from offering crypto-related services.
Critics, including Coinbase’s Chief Legal Officer Paul Grewal, argue such actions constitute regulatory overreach, stifling innovation and targeting lawful crypto businesses.
Grewal described the letters as evidence of a “shameful” pattern, while Hill pledged to establish transparent guidelines for blockchain and digital asset activities, reversing what he termed a “damaging” approach.
Hill also called for regulators to adopt clear standards for emerging financial technologies and fintech partnerships.
Debanking, another focal point, has drawn ire from the crypto industry, which claims discrimination against lawful firms.
Hill underscored the need to eliminate practices that deny banking access without explanation, citing the broader economic implications of such measures.
The anticipated shift aligns with President-elect Donald Trump’s broader push for deregulation, as evidenced by recent comments from Federal Reserve Governor Michelle Bowman.
Crypto market movers
- Bitcoin is down 0.5% over the past 24 hours to trade at $94,050.
- Ethereum is down 2.2% over the same period to $3,220.
What we’re reading
- Arthur Hayes says Trump will ‘massively’ devalue the dollar sending Bitcoin to $250,000 ― DL News
- Crypto-Friendly Summer Mersinger Is Now the Top Contender for CFTC Chair ― Unchained
- Bhutan’s Crypto Reserve Could Pave Way for Economic Growth in Other Countries ― CoinDesk
- Messari lays off roughly 15% of staff amid industry-wide cuts, CEO Turner confirms ― The Block
- Crypto’s court docket in 2025 is packed with big cases — here’s a rundown ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.