FILE PHOTO: U.S. President Donald Trump gestures on the day he attends an event hosted by America250 in Des Moines, Iowa, U.S., July 3, 2025. REUTERS/Nathan Howard/File Photo

(Reuters) -U.S. President Donald Trump this week nominated Travis Hill, the acting chair of the Federal Deposit Insurance Corp, to lead the key U.S. bank regulator, according to a source familiar with the matter.

Hill was widely seen as the top contender to take the job on a permanent basis. He has served as the FDIC's vice chair since 2023.

He had previously served as a senior adviser to then-FDIC Chairman Jelena McWilliams during Trump's first term.

Hill's nomination has been received in the Senate and referred to the Committee on Banking, Housing and Urban Affairs, according to a congressional website.

Prior to the FDIC, Hill served as a counsel on the Senate Banking Committee, where he helped the panel advance legislation to ease post-crisis rules for regional banks.

Under Hill, the FDIC has sought to lighten regulatory oversight, including a move to roll back a Biden-era policy that ramped up the scrutiny of large bank mergers.

In March, the regulator also announced that banks could engage in crypto activities without having to receive prior approval.

He has previously also criticized efforts by Democratic regulators to impose strict new capital rules on bigger banks, commonly known as "Basel III endgame."

The White House and the FDIC did not immediately respond to Reuters' requests for comment.

Bloomberg News had reported the story earlier in the day.

(Reporting by Pete Schroeder and Bipasha Dey and Arasu Kannagi Basil in Bengaluru; Editing by Leroy Leo and Anil D'Silva)