Key points to remember
- House Majority Whip Tom Emmer asked FDIC Chairman Martin Gruenberg about Operation Choke Point 2.0.
- Emmer cited several instances in his letter where federal regulators pressured banks to stop providing services to crypto companies.
- Emmer called the regulatory strategy “lazy and destructive.”
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Representative Tom Emmer sent a letter strongly questioning FDIC Chairman Gruenberg following reports that federal regulators were trying to cut the crypto industry off from the banking sector.
A lazy and destructive regulatory strategy
Crypto has important allies in Congress.
Today House Majority Whip Tom Emmer (R-MN) sent a letter asking Federal Deposit Insurance Corporation Chairman Martin Gruenberg to respond to rumors that the FDIC and other federal entities had pressured the banking industry to stop providing services to the crypto industry.
“Recent reports indicate that federal financial regulators have effectively armed their authorities over the past few months to purge legal digital asset entities and opportunities from the United States,” the letter said. Emmer went on to list several instances – including a joint statement made on January 3 by the Federal Reserve, FDIC and OCC discouraging banks from holding crypto or providing services to crypto companies on a “security and safety” basis. solidity” – in which the Biden administration appears to have illegally targeted the crypto industry.
“The administration’s demonstrated effort to stifle digital assets from the U.S. financial system is a lazy and destructive regulatory strategy that stalls innovation and subjects U.S. users of digital assets to less sophisticated regulatory jurisdictions,” said Emmer.
The congressman then asked bluntly whether the FDIC had ordered banks not to provide services to crypto companies, and whether the regulator had threatened banks with “more onerous” oversight if they failed to comply. instructions. The FDIC had until May 24 to respond.
Tom Emmer has proven to be one of crypto’s staunchest allies in Congress over the past year. In July 2022 Emmer slammed the Securities and Exchange Commission for its “power-hungry” approach to crypto regulation; he also sent a letter examination the Treasury’s motives for banning the Tornado Cash privacy protocol.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.