Lawmakers debate crypto firms’ access to banking services.
Watchdog Challenges Crypto Debanking Narrative
A Wall Street watchdog group is pushing back against claims that US regulators are targeting crypto firms through debanking. The issue was discussed during a Feb. 6 hearing by the House Financial Services Committee (HSFC).
FDIC’s Stance on Crypto Firms
Shayna Olesiuk, banking policy director at Better Markets, defended the Federal Deposit Insurance Corporation (FDIC), stating it acted against misleading claims regarding deposit insurance. She emphasized that banks’ decisions to close accounts are often misinterpreted due to limited public disclosure.
Crypto Industry Pushes Back
Coinbase Chief Legal Officer Paul Grewal and MARA CEO Fred Thiel argued that regulatory agencies, including the FDIC, engaged in overreach. They cited letters issued by the FDIC in 2022 advising banks to “pause all crypto asset-related activity.”
Lawmakers Address Transparency Issues
US lawmakers also examined the Securities and Exchange Commission’s (SEC) alleged role in restricting banking services for crypto firms. Recent hearings in both the House and Senate have scrutinized the transparency of regulatory actions.
Documents Reveal FDIC Communications
The hearings followed the release of 790 pages of FDIC correspondence related to crypto banking. These documents, made public under acting FDIC chair Travis Hill, were further supplemented by court-ordered releases in response to a Freedom of Information Act lawsuit led by Coinbase.
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