Christy Goldsmith Romero, the nominee for Chair of the FDIC, has suggested that banks should have the autonomy to determine whether or not they will provide services to digital asset companies.
The FDIC’s departure from its earlier conservative position on cryptocurrency may foster improved collaboration between US financial institutions and the crypto industry, thereby mitigating current limitations.
Faryar Shirzad, the Chief Policy Officer of Coinbase, underscored the significance of Romero’s remarks, drawing a connection to Operation Chokepoint 2.0, a measure that is widely perceived as unfairly singling out the crypto industry.
Nevertheless, Shirzad cautioned that in order to bring about change, the White House would need to retract its instructions and appointees and actively work to undo existing forces.
Adopting Romero’s approach would result in a substantial change in policy for the FDIC. The FDIC, Federal Reserve, and Office of the Comptroller of the Currency issued a warning stating that business models centered around crypto have the potential to jeopardize the safety of the banking industry. As a result of this cautious approach, some banks decided to restrict or terminate their services for crypto enterprises.
Nevertheless, the cryptocurrency industry is taking action by filing a lawsuit against the FDIC and SEC, demanding access to papers regarding their regulatory strategies for cryptocurrencies.
If Romero were to assume the position of FDIC Chair, it may enhance the rapport between banks and the crypto industry, hence fostering increased innovation and expansion in digital assets.
