US House Probes Potential Operation Choke Point To De-Bank Crypto

US House Seeks Details on Potential De-Bank of Crypto

U.S. House Financial Services Committee Chairman Patrick McHenry, Digital Assets, Financial Technology and Inclusion Subcommittee Chairman French Hill, and Oversight and Investigations Subcommittee Chairman Bill Huizenga sent letters to Jerome Powell, Martin Gruenberg, and Michael Hsu seeking all records of the agencies.

advertisement

The House will investigate whether the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of Currency coordinated an Operation Choke Point-type action to deny banking services to the crypto sector.

The potential Operation Choke Point 2.0 by the U.S. financial and banking regulators saw strong backlash from the crypto community and Congressmen such as House Majority Whip Tom Emmer. It led the U.S. House lawmakers McHenry, Hill, and Huizenga send letters to the FDIC, Treasury Department, Federal Reserve, and Office of the Comptroller of Currency’s on their actions and plans for the digital assets market.

Bitcoin Campaign

The World’s first licensed Crypto Casino. Begin your journey with 20% cashback up to 10,000 USDT.

Signup Ad

The lawmakers believe the actions by the agencies are in contrast to the Biden Administration’s “Executive Order on Ensuring Responsible Development of Digital Assets”. The committee will excuse strategy against the Crypto Market at the expense of harming consumers and investors.

On January 2, the Fed, FDIC, and OCC issued a joint statement warning about crypto risks in the banking sector if banks continue to provide crypto-related services.

The letters state digital asset activity is not always risky. While the market is volatile, the FTX debacle and the Banking Crisis were not caused by crypto and its activities.

“The reaction by the federal prudential regulators to fraud and mismanagement should not lead to de-risking of the digital asset industry. Taken together, the actions of the Fed, FDIC, and OCC do not appear to be in reaction to recent events.

Also Read: Bitcoin-Gold Correlation Hits All-Time High

Comments

Post a Comment

Popular posts from this blog

Bybit seeks crypto license in Hong Kong

Cryptocurrency exchange Bybit has applied for a Virtual Asset Service Provider (VASP) license in Hong Kong, according to regulatory filings. Bybit has joined the list of 14 applicants seeking a license from the Securities and Futures Commission (SFC) to offer services in Hong Kong. According to the regulatory filing submitted on Jan. 31, Bybit wants to offer services in the region through Spark Fintech Limited. The timing and approval status of Bybit’s application by the SFC remains unclear, as other crypto businesses, including OKX, are still awaiting regulatory approval. Thus far, only two companies, OSL Exchange and HashKey Exchange, have received a crypto trading license from the SFC. As of press time, Bybit has not issued any public statements regarding the application. Bybit expressed interest in expanding services in Hong Kong in April 2023, when the Dubai-based crypto exchange outlined plans to establish its central Asian business there. As crypto .news reported, ...
Read more

Insider trader turns $1,000 to $1 million in three hours

Image
The crypto market rally of 2024 has already featured many of the hallmarks of a cryptocurrency bull market, including the release of multiple new coins and tokens, a new all-time high (ATH) for Bitcoin (BTC), and various stories of rapid wealth-building. The most recent of the rags-to-riches stories came late on June 6 when data from Solscan revealed that an insider acquired more than 190 million Hulkmania (HULK) – 19% of the total circulating supply – at the cost of just 7.1 Solana (SOL), worth $1,200 at the time.  The trade enabled them to, within a mere three hours , sell the 190 million HULK for more than 5,760 SOL – worth just under $1 million at the time. Picks for you Haruko to enhance digital asset management with Stacks integration 24 mins ago ...
Read more

BlockFi used customer money to buy $30M insurance, creditors claim

BlockFi said selling its cryptocurrency lending platform might not generate value for creditors. Disgruntled creditors of the bankrupt cryptocurrency lending firm BlockFi have submitted a new court filing in response to the company’s latest restructuring plan. On May 12, BlockFi outlined its Chapter 11 plan of reorganization in a filing with the United States Bankruptcy Court in Trenton, New Jersey. The firm said that selling BlockFi might not generate enough value for creditors as it owes nearly $1.3 billion to its top 50 creditors . In response, BlockFi creditors submitted another court filing on May 15, arguing that BlockFi deliberately took measures to delay the trial. Represented by the law firm Brown Rudnick, BlockFi creditors wrote that BlockFi sold about $240 million worth of crypto before filing for bankruptcy in late November 2022. The creditors emphasized that the crypto lender sold the assets “at the nadir,” referring to a massive market slump following the collapse of F...
Read more