Senate Investigates Alleged Regulatory Pressure Behind Crypto and Industry-Wide Debanking
Lawmakers scrutinize claims of federal agencies influencing banks to sever ties with cryptocurrency firms and other sectors, raising bipartisan concerns over fairness and market access.
- The Senate Banking Committee held hearings to address allegations that federal regulators pressured banks to cut services to cryptocurrency firms and other industries, a practice dubbed 'Operation Choke Point 2.0.'
- Crypto executives, including Anchorage Digital's CEO Nathan McCauley, testified about widespread banking rejections, citing regulatory guidance warning banks of crypto risks as a key factor.
- Senators Tim Scott and Elizabeth Warren expressed bipartisan concerns, with Scott advocating for a fair and accessible financial system and Warren highlighting the volume of consumer complaints about unexplained account closures.
- Released FDIC documents revealed internal oversight and alleged pressure on banks to refuse services to crypto companies, raising questions about the role of reputational risk in regulatory decisions.
- Witnesses and lawmakers called for clearer regulatory frameworks and safeguards to ensure banking access while addressing legitimate risk management concerns.
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