Former President Donald Trump has put forward Travis Hill, currently the acting Chairman of the Federal Deposit Insurance Corp (FDIC), as his permanent choice to head the organization responsible for regulating banks.
During his time as acting Chairman, Hill has generally been seen as favorable toward the cryptocurrency sector. He has consistently spoken out against and acted against regulatory approaches he perceived as attempts to sever banking relationships with the crypto industry.
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Hill’s Nomination Hints at Potential Regulatory Easing
Trump has nominated Hill to permanently lead the FDIC, an independent government entity tasked with maintaining the stability of the nation’s financial institutions and insuring customer bank accounts.
Subject to confirmation by the Senate, Hill is expected to continue a trend of reduced regulatory burden on banks. This could open the door for banks across the United States to increase their involvement in services connected to cryptocurrency.
Shifting Gears: Reduced Oversight for Banks and Crypto
Travis Hill currently serves as the Acting Chairman of the FDIC. He has occupied this position since his appointment by Trump in January of 2025. Prior to this, starting in 2023, he held the role of FDIC Vice Chairman.
Hill’s prior experience with the agency includes serving as Senior Advisor to the then-FDIC Chair, Jelena McWilliams, during Trump’s previous presidential term.
During Hill’s leadership, the FDIC has begun to ease its regulatory oversight.
In March, the FDIC reversed a policy established during the Biden administration that increased scrutiny on mergers involving major banks. Further, the agency announced that banks could engage in certain crypto-related activities without needing explicit prior approval.
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This shift marks a noteworthy change in the nation’s banking policy. It removes a significant barrier that formerly restricted major financial firms on Wall Street from participating in the digital asset space.
Hill’s Opposition to Excessive Regulation
Hill has been outspoken in his opposition to “debanking,” which describes the practice of banks ending relationships with customers in industries they deem high-risk, such as cryptocurrency companies.
He has publicly contested the claim that federal agencies had formally instructed banks to terminate ties with companies operating in the crypto space.
The acting chairman has been critical of the FDIC’s previous supervisory practices, noting that they created a widespread perception that the agency was unwilling to collaborate with banks considering blockchain-related ventures.
“I have spoken previously about how damaging this approach has been. It has stifled innovation and contributed to a public feeling that the FDIC isn’t open to business if institutions are exploring blockchain or distributed ledger technology,” Hill stated in a public address prior to becoming acting chairman.
Hill initiated a policy change to remove “reputational risk” from the criteria FDIC supervisors utilize when assessing banks.
The intent of this change was to remove a basis for supervisory pressure that critics have alleged was previously used unfairly to discourage financial institutions from serving lawful businesses involved in digital assets.