The Federal Deposit Insurance Corporation’s (FDIC) Interim Chairman Travis Hill recently addressed concerns about “debanking” practices towards cryptocurrency companies during his speech in St Louis on January 10th . According to him,”Efforts towards depository institutions cutting off relations with lawful cryptocurrency enterprises cannot be tolerated.” This move comes amidst accusations from critics referring it as “Operation Choke Point 2 .0”, an initiative aimed at restricting US Cryptocurrency Industry’s growth by putting pressure through depository institutions .
In his address , Mr . Hill stated firmly against such acts stating they were against their core objective i .e . reducing unbanked population within America . Moreover , it was mentioned by him how important it was for regulators especially FDIC should stop such practices immediately so they can maintain their commitment towards ensuring fair treatment towards all their clients regardless their association or political views .
Furthermore , Mr .Hill raised concerns related towards current policy framework adopted by authorities related towards cryptocurrencies & distributed ledgers technologies( DLT ) pointing out how cautionary approaches adopted previously might have resulted into restricting innovation within sector . As part solution proposal ,he stressed upon importance providing clearer & transparent guidelines related safe & permitted activity along side proper supervision mechanisms within sector thus helping promote safe & responsible development within sector going forward .
In addition ,interim chairman touched base other issues surrounding sector like regulation surrounding staking & lending activity mentioning importance providing timely approval only after satisfying necessary safeguards concerning customer protection & overall market stability .
Lastly ,Mr .Hill addressed wider implication surrounding recent trends related depository institution cutting off relations citing example surrounding Bank Secrecy Act( BSA )implementation leading many institution choosing closure option instead facing possible penalty resulting negatively impacting innocent customer base going forward suggesting need revisiting existing framework promote fair treatment everyone involved sector going forward.

As reported by Cryptoslate.com.

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