- Senate Banking Committee investigates allegations of systematic banking restrictions on cryptocurrency firms under Biden administration.
- Anchorage Digital CEO reports rejection from 40 banks, citing regulatory pressure as the primary cause.
- Federal regulators’ January 2023 joint statement on crypto risks led to widespread account closures and service reductions.
- Internal FDIC documents reveal “pause letters” sent to banks seeking to expand crypto services.
- Congressional investigation continues with House Subcommittee hearing featuring testimony from major crypto industry executives.
The U.S. Senate Banking Committee, led by Senator Tim Scott, launched an investigation into claims that federal regulators pressured banks to terminate relationships with cryptocurrency businesses, echoing concerns about discriminatory banking practices reminiscent of the Obama-era Operation Choke Point.
Nathan McCauley, CEO of Anchorage Digital, testified that his federally chartered crypto bank faced widespread rejection from financial institutions, stating “We spoke to about 40 banks across the country, and were rejected by all of them, many telling us that they had a blanket policy against serving crypto clients.”
The controversy gained momentum after venture capitalist Nic Carter published a detailed report documenting the systematic exclusion of crypto companies from banking services. Industry leaders, including Marc Andreessen and Jesse Powell of Kraken, corroborated these claims with their own experiences.
Mike Ring, CEO of Old Glory Bank, criticized major financial institutions like JPMorgan Chase, Bank of America, and Citibank for arbitrarily discriminating against crypto businesses. The situation intensified following the collapse of FTX and the closure of crypto-friendly Signature Bank in March 2023.
The FDIC recently disclosed 175 internal documents detailing its crypto oversight practices. Caitlin Long, founder of Custodia Bank, highlighted evidence suggesting banks were pressured to refuse U.S. dollar deposits from crypto companies.
The investigation continues with the House Subcommittee on Oversight and Investigations scheduling additional testimony from industry leaders, including Coinbase’s chief legal officer Paul Grewal, who characterized the regulatory approach as “regulation by exhaustion.”
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