FDIC Vice Chairman Takes Aim at Controversial SAB 121, Pushes for Regulatory Clarity Regulatory Hurdles for Blockchain? FDIC Vice Chairman Speaks OutIn a bold move, FDIC Vice Chairman Travis Hill has set his sights on the contentious SAB 121, an accounting bulletin from the SEC that has raised eyebrows in the banking world. Speaking at George Mason University's Mercatus Center, Hill didn't mince words when he criticized the lack of
regulatory clarity surrounding blockchain and distributed ledger technology, which he believes has given the impression that the FDIC is hesitant to embrace innovation.
Striving for Clarity Amid Technological AdvancementsWhile acknowledging the challenges of keeping up with rapidly evolving technology, Hill emphasized the importance of providing clear guidelines to financial institutions. He stressed that regulators should strive to define what is permissible and what constitutes a
safe and sound approach in this ever-changing landscape.
SAB 121: A Sour Note in Banking RegulationHill's critique extended to SAB 121, which he sees as a departure from standard accounting practices. The bulletin's requirement for banks to include digital assets on their balance sheets doesn't sit well with him, as it imposes additional capital and liquidity requirements that could hinder banks' ability to participate in this space meaningfully.
Congressional Showdown Looms Over SAB 121The House Financial Services Committee has already taken a stance against SAB 121,passing a resolution that aims to overturn it. Now awaiting a full vote in the House of Representatives, this move signals growing opposition to the SEC's accounting approach.
FDIC's Watchful Eye on Crypto ContinuesHill's recent remarks follow the FDIC's cautious stance on cryptocurrencies highlighted in their latest Risk Review report. With an eye on consumer protection, the FDIC has been tightening its grip on advertising rules to combat
misrepresentations and
false advertising related to deposit insurance coverage.
