Debanking In Crypto Opened For Investigation By U.S. House Oversight Committee
The U.S. House Oversight and Accountability Committee has launched an investigation into the alleged debanking in crypto firms, a practice that has stirred controversy in the crypto industry.
| Key Takeaways: – The U.S. House Oversight Committee is investigating the alleged debanking in crypto firms. – The investigation will focus on whether federal agencies have pressured financial institutions to limit services to legitimate crypto companies. |
The investigation follows claims made by venture capitalist Marc Andreessen, who revealed on “The Joe Rogan Experience” in November that over 30 tech entrepreneurs had been targeted by banks closing their accounts without clear justification.
Andreessen contends that this practice, which he links to the Biden administration’s “ChokePoint 2.0” strategy, disproportionately affects the tech and crypto sectors.
House Oversight Committee Chair James Comer announced on Friday that the committee will be investigating whether federal agencies have pressured financial institutions to limit services to legitimate cryptocurrency firms. The investigation will focus on reviewing communication records between regulatory bodies and banks to uncover any undue influence.
In a bid to gather more information, Comer has reached out to Andreessen and several prominent figures in the crypto industry, including Coinbase CEO Brian Armstrong, Blockchain Association CEO Kristin Smith, and Uniswap Labs CEO Hayden Adams, among others. They have all publicly raised concerns about the growing trend of debanking in crypto sector.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
