US regulators are facing increased scrutiny over potential efforts to de-bank the cryptocurrency market. House Financial Services Committee Republicans have accused SEC Chair Gary Gensler of inappropriate enforcement strategies and regulatory agendas. Lawmakers are now investigating coordinated efforts to restrict banking services for digital asset firms, arguing that digital asset activity is not inherently risky and should not lead to de-banking. This development could have significant implications for the future of cryptocurrency regulation in the United States.
US House Financial Services Committee Chairman Patrick McHenry, along with Subcommittee Chairmen French Hill and Bill Huizenga, are launching an inquiry into potential de-banking of the cryptocurrency market. In letters to Jerome Powell, Martin Gruenberg, and Michael Hsu, they have requested records of the agencies' actions and plans in relation to digital assets, financial technology, and inclusion. This inquiry comes after criticism from the crypto community and House Majority Whip Tom Emmer, with lawmakers expressing concern over a potential "Operation Choke Point 2.0." The inquiry specifically targets the FDIC, Treasury Department, Federal Reserve, and Office of the Comptroller of Currency. This development could have significant implications for the future of cryptocurrency regulation in the United States.