An investigation into the US House of Representatives and a hearing on The Senate will review If financial regulators during the administration of former President Joe Biden deliberately cut down the leaders of the crypto industry and others from the banking system to the inappropriate use of the authority.
“Debanking is not American – every legal business deserves to be treated the same regardless of their political beliefs,” said Senate Banking Committee Chair Tim Scott, a South Carolina Republican who replaced the Gavel earlier this month and had schedule of hearing on February 5. In debanking. “Unfortunately, under Operation Chokepoint 2.0, Biden regulators abused their power and forced financial institutions to cut off services to digital asset firm, political figures, and businesses and individuals aligned with conservative . ”
Operation Chokepoint 2.0 is the name Republican Lawmakers and the Digital Asset Industry are used for systemic severing of crypto insiders from US banks, in reference to Operation ChokePoint in the earlier time – an effort to allow the government to reduce risk to banking by encouraging lenders. to withdraw from legal but otherwise dangerous businesses.
In investigation into the struggle of crypto executives and businesses to maintain banking relationships, the House Oversight Committee is “investigating whether this debanking practice is derived from financial institutions or from either implicit or explicit pressure from those Government regulator, “according to a letter chairman of the committee, Representative James Comer, sent on Friday to the founders and CEOs of some crypto companies and organizations, including Coinbase, Lightswap and Uniswap labs.
The challenge of pining the lack of banking options in full government is that some financial institutions may make decisions based on their own risk or business plans that deliberately avoid crypto interests . And banking regulators such as Federal Deposit Insurance Corp. And the Office of the Comptroller of the Currency is public in their guidance that regulated banks seeking to make a crypto business will face restrictions and further review from agencies.
However, a coinbase pursuit of private FDIC communications in banks showed that the agency They were ordered to stop chasing Digital Asset Services until the regulator has specific rules, which it does not develop.
“We are grateful to assist in a thorough investigation of this harmful work,” said Kristin Smith, CEO of the Blockchain Association, who also received a letter of the Chamber Committee reviewing the trend.
Meanwhile, Democratic Congress has been focusing their own investigation requests In the recently launched Meme Coin by President Donald Trump, $ Trump. He was accused of using the presidency to earn billions of dollars, and they mentioned the token as a potential risk for dangerous conflicts of interest.
