The House Oversight Committee is investigating whether the Biden-era Federal Deposit Insurance Corporation discouraged banks from engaging with crypto businesses.
Lawmakers are demanding unredacted records after the FDIC’s new Acting Chairman, Travis Hill, acknowledged that the agency’s past approach created a “general perception” that it was “closed for business” on blockchain.
Chairman James Comer is requesting access to previously redacted FDIC documents related to so-called “pause letters,” which reportedly pressured banks to halt crypto-related activities.
Comer’s inquiry follows Federal Reserve Chair Jerome Powell’s recent admission that crypto companies were likely debanked.
Powell stated, “At least some of it is real. We need to understand it, and stop it from happening.”
The investigation also builds on concerns raised in a Senate Banking Committee hearing last month, where Anchorage Digital Bank CEO Nathan McCauley said crypto founders almost universally faced banking issues.
“I asked a room of 100 crypto founders who had been debanked, and every hand went up,” McCauley testified.
Critics argue that the Biden administration engaged in a coordinated effort to cut off crypto from the financial system, often referred to as “Operation Choke Point 2.0.”
While regulators deny improper interference, crypto firms have accused the FDIC and other agencies of enforcing opaque, restrictive policies.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected]. creator solana token
