House Majority Whip Questions FDIC About Crypto Bank “Purge”

important point

  • House Majority Rep. Tom Emmer asked FDIC Chairman Martin Gruenberg about Operation Chokepoint 2.0.
  • In his letter, Emmer cited multiple instances in which federal regulators pressured banks to stop serving cryptocurrency companies.
  • Emer called the regulatory strategy “lazy and disruptive.”

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Rep. Tom Emmer has sent a letter to FDIC Chairman Gruenberg questioning sharply after reports that federal regulators are trying to separate the cryptocurrency industry from the banking sector.

Lazy and disruptive regulatory strategies

Crypto has important allies in Congress.

House Majority Whip Tom Emmer (Republican-Minnesota) Today sent a letter He called on Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, to address rumors that the FDIC and other federal agencies are putting pressure on the banking sector. stop providing services to the crypto industry.

“Recent reports indicate that federal financial regulators have effectively weaponized them over the past few months to purge the United States of legitimate digital asset entities and opportunities,” the letter said. I’m here. In his Jan. 3 joint statement by the Federal Reserve, FDIC, and OCC, Emer said banks would hold cryptocurrencies on the basis of “safety and soundness,” and crypto companies We have listed several examples, including discouraging people from providing services to It appears to have illegally targeted the cryptocurrency industry.

“The government’s tried-and-true efforts to keep digital assets out of the U.S. financial system are lazy and disruptive regulatory strategies that stifle innovation and make U.S. users of digital assets less sophisticated,” Emmer said. We are subjecting ourselves to regulatory jurisdiction,” he said.

Lawmakers question whether the FDIC has instructed banks not to serve cryptocurrency firms and whether regulators have threatened more “troublesome” supervision if banks do not comply. asked frankly. The FDIC has until May 24th to respond to him.

Tom Emer has proven himself to be one of the strongest proponents of crypto in Congress over the past year. Jul 2022 Emer condemned Securities and Exchange Commission against “power-hungry” approach to crypto regulation.he also sent a letter interrogation Motivation of the Treasury to ban Privacy Protocol Tornado caches.

Disclosure: At the time of writing, the author of this work owned BTC, ETH, and several other crypto assets.

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