FDIC Official Calls for Improved Digital Asset Policy to Preserve US Influence
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FDIC Official Calls for Improved Digital Asset Policy to Preserve US Influence
During a speech at the Mercatus Center, Travis Hill, vice chair of the US Federal Deposit Insurance Corporation (FDIC), expressed concerns about the potential negative impact of poorly regulated blockchain technology on bank customers and the US economy. Hill admitted that the US is already at risk in this area, and the FDIC shares some of the blame. He highlighted the potential benefits of tokenization, such as the ability to carry out real-time financial transactions and programmable payments, which could lead to improved settlement times. Hill also warned about the risks associated with programmability, including the possibility of quick asset movements exacerbating bank runs. He argued that regulation is necessary to prevent this and criticized the FDIC’s current approach, which treats all blockchain transactions the same and burdens institutions with excessive information requests. Hill called for clear guidance and consistency among regulators in treating all types of deposits equally. He also criticized the Securities and Exchange Commission’s SAB 121, which requires financial institutions to treat crypto assets differently, even when they are tokenized real-world assets. Hill recommended a more inclusive definition of crypto assets in the bulletin.
Hill’s call for clear guidance and consistency among regulators is essential. Treating all types of deposits equally in the blockchain space is the key to a fair and inclusive financial ecosystem. 💯⚖️
Oh, now they want clear guidance and consistency. How about they start by understanding the technology they’re trying to regulate?
Travis Hill’s critique of SAB 121 raises important questions about the treatment of crypto assets. Let’s adopt a more inclusive definition to foster fairness and consistency in the financial sector.
Clear guidance and consistency among regulators are essential for a fair and balanced approach to blockchain transactions. Travis Hill’s call for these measures is right on point!
It’s frustrating when regulators can’t keep up with the evolving landscape of technology. Maybe it’s time for some fresh perspectives.
Travis Hill makes a valid point about the FDIC’s current approach, treating all blockchain transactions the same and burdening institutions with excessive information requests. We need a more balanced approach!
The risks associated with programmability raised by Hill are definitely worth paying attention to. Regulation is necessary to prevent potential issues with asset movements and bank runs. Safety first!
The FDIC’s approach is burdensome and outdated. It’s time for them to catch up with the times and understand the potential benefits of blockchain.