- The US House Oversight Committee has announced its investigating cases of debanking of crypto companies.
- Uniswap, Coinbase, Kraken, a16z and Blockchain Association are among crypto companies and entities to receive a letter asking for information on the alleged debanking.
- The Senate Banking Committee is also set to hold a hearing on debanking in early February.
The U.S. House Oversight Committee is probing the issue of alleged debanking of crypto companies and individuals.
On Jan. 24, the committee sent a letter addressed to several crypto executives asking them to share information on the debanking claims. Apart from crypto companies, US First Lady Melania Trump also highlighted the issue.
Investigations are part of the new focus on crypto regulation following a largely negative four years under President Joe Biden’s government.
BREAKING
Chairman James Comer Investigates Apparent Politically Motivated Debanking of Thirty Tech Founders, First Lady Melania Trump
Chairman Comer is investigating recent reports of financial institutions debanking lawful American businesses and individuals based on… pic.twitter.com/X7tZlsz3NK
— Oversight Committee (@GOPoversight) January 24, 2025
Those to receive the letter are Uniswap Labs CEO Hayden Adams, Coinbase co-founder and CEO Brian Armstrong, a16z co-founder Marc Andreessen and Kraken CEO David Ripley. The letter also sought the input of Lightspark CEO David Marcus and Blockchain Association CEO Kristin Smith.
“The Committee seeks to understand whether this pattern of debanking stems from financial institutions themselves or from government actors,” the letter reads in part.
Senate Banking Committee to hold a hearing
Crypto debanking has also attracted the attention of the House Financial Services Committee and the Senate Banking Committee, both of which are looking to get to the bottom of this heavily criticised developments.
“The Committee is concerned about the chilling implications this overreach may have in silencing industries arbitrarily disfavored by regulators, driving consequential technological and financial innovation overseas, and preventing targeted businesses from making payroll and paying employees their wages,” the Oversight Committee’ letter continues.
The Senate Banking Committee has announced it will hold a hearing on crypto debanking on February 5, 2025. Committee chair Tim Scott said:
“Debanking is un-American – every legal business deserves to be treated the same regardless of their political beliefs. Unfortunately, under Operation Chokepoint 2.0, Biden regulators abused their power and forced financial institutions to cut off services to digital asset firms, political figures, and conservative-aligned businesses and individuals.”
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