Congress Investigates Alleged Crypto 'Debanking' Under Biden Administration

House and Senate committees are examining claims that U.S. regulators pressured banks to sever ties with crypto firms and politically aligned entities.

House Oversight Chair James Comer and Senate Banking Chair Tim Scott are leading investigations into alleged 'debanking' practices targeting cryptocurrency firms and conservative-aligned businesses.
The term 'Operation Choke Point 2.0' has been used to describe accusations that Biden-era regulators pressured banks to cut services to digital asset firms and other entities deemed risky.
Crypto leaders, including Coinbase CEO Brian Armstrong and Blockchain Association CEO Kristin Smith, have expressed support for the investigations, citing instances of sudden account closures and regulatory pressure.
The Senate Banking Committee has scheduled a hearing on February 5, and the House Financial Services Committee will hold a related hearing on February 6 to gather testimony and evidence.
President Trump, now in his second term, has taken a pro-crypto stance, signing an executive order to establish a digital asset working group and criticizing banks for alleged political discrimination.