US Lawmakers Launch Probe into Crypto Debanking Allegations

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The U.S. House Committee on Oversight and Government Reform, led by Republican lawmakers, has initiated an investigation into debanking allegations of financial discrimination against individuals and entities tied to the cryptocurrency industry.

Oversight Committee Targets Alleged Debanking

In a Friday letter addressed to six prominent crypto leaders, including the Blockchain Association, Committee Chair James Comer announced the inquiry. The investigation seeks to determine whether financial institutions or government agencies, such as the Federal Deposit Insurance Corporation (FDIC), engaged in practices aimed at debanking crypto-affiliated individuals or companies.

“The Committee seeks to ensure that entrepreneurs are not unfairly targeted and, by extension, that all Americans can participate in U.S. markets without fear of retaliation through illicit measures undertaken by financial institutions or federal regulators,” Comer stated.

The allegations are partly based on claims from industry heavyweights such as Uniswap Labs CEO Hayden Adams, Coinbase CEO Brian Armstrong, and Kraken founder Jesse Powell. These figures have voiced concerns about what some have dubbed “Operation Chokepoint 2.0,” referencing a previous initiative during the Obama administration that scrutinized financial services tied to high-risk sectors like payday lending.

Industry Pushback and Legal Action

The issue gained traction after Coinbase filed a Freedom of Information Act (FOIA) lawsuit against the FDIC in 2024, demanding the release of communications between the agency and banks regarding crypto-related activities. Letters from Coinbase revealed that, in 2022, the FDIC allegedly pressured certain banks to halt digital asset operations, citing regulatory uncertainty.

Marc Andreessen, co-founder of Andreessen Horowitz, added fuel to the debate in late 2024 by claiming that debanking efforts unfairly targeted “disfavored tech startups.” On Jan. 24, Andreessen Horowitz announced plans to close its UK offices, citing confidence in the Trump administration’s pro-crypto stance as a reason for doubling down on U.S. operations.

Memecoin Scrutiny

The investigation also comes against the backdrop of partisan debates over cryptocurrency regulation. Democrats on the committee, now in the minority, have called for an inquiry into potential conflicts of interest involving President Donald Trump, following the Jan. 17 launch of his controversial TRUMP token. Representative Gerald Connolly warned that the memecoin could pose national security risks due to potential foreign financial entanglements.

As Republicans begin their policy agenda for the 119th U.S. Congress, the crypto industry awaits clarity on whether the debanking allegations will lead to meaningful regulatory changes—or simply add to the political theater.

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