- Financial Services Committee members demand access to internal correspondence
- They suspect that operation “Choke Point 2.0” has been launched against the cryptocurrency business
- The FDIC, OCC and Fed have previously repeatedly hinted to banks that links to this sector are fraught with potential losses
Three members of the House Financial Services Committee sent letters to the heads of the FDIC and OCC.
In them, the Reds demand all relevant information as part of an investigation into possible coordinated efforts by agencies to isolate the cryptocurrency segment in the banking field.
In an appeal to Martin J. H. W. Hoffman, the. Grunberg (FDIC) and Michael J.. Hsu (OCC) authors refer to the so-called “Choke Point” operation.
This is a U.S. Justice Department initiative to investigate the connections of financial contractors in the U.S. with the “gray sector.”
This federal project was covered by WSJ magazine. Among other things, the portal found information about how the FDIC and OCC “strongly advised” individual banks to sever ties with a particular sector.
The authors of the letters believe that a similar operation was launched against the cryptocurrency segment. And its first “victims” were SVB, Signature and Silvergate Capital.
“Today we are seeing a resurgence of coordinated action by federal prudential regulators to suppress innovation in the United States.
There is no better example of this than the digital asset sector.”
Politicians are demanding that they be given access to internal interagency correspondence.
They cite the FDIC and OCC clarification letters as well as a joint statement with the Fed warning banks about the excessive risk of working with cryptocurrency companies as justifications.