Michaela
Amid growing allegations of regulatory bias against the cryptocurrency industry, Rep. French Hill has announced plans to examine the challenges crypto businesses face with banking.
During a Dec. 3 hearing focused on financial technology, Hill, a leading candidate to chair the House Financial Services Committee next year, raised concerns about regulatory practices affecting the crypto industry.
Hill’s move to ramp up investigations follows claims that regulators are deliberately targeting cryptocurrency businesses by restricting their access to banking services, otherwise known as “debanking.” These alleged practices have left crypto companies struggling to maintain financial relationships.
Marc Andreessen, co-founder of the venture capital firm a16z, claimed during an appearance on Joe Rogan’s podcast that the U.S. government exerted pressure on banks to shut down accounts linked to cryptocurrency and other industries.
“Legal businesses in the United States, in this great country should have the freedom to bank and have financial services. We’ve seen this over and over again,” French Hill stated. “We have the documents, we’re reviewing. We’re going to continue that review through the end of this Congress and into the next Congress.”
Related: Hong Kong Proposes Rules Allowing Insurers to Invest in Crypto
During Wednesday’s hearing, Hill questioned Stellar Development Foundation CEO Denelle Dixon and Anchorage Digital CEO Nathan McCauley about their experiences with “debanking.”
Both executives confirmed they had faced challenges, with Dixon explaining that her organization had to approach multiple banks after losing access to services.
The Federal Deposit Insurance Corporation (FDIC) stated in its 2024 Risk Review report that it, alongside other regulatory agencies, “continues to emphasize that banking organizations are neither prohibited nor discouraged from providing banking services to customers of any specific class or type.”
Related: US Lawmakers Propose Tax Breaks for Small Stablecoin Payments and Staking
In July 2024, the Federal Reserve came out with a joint statement with the FDIC and the Office of the Comptroller of the Currency (OCC).
“Banks are neither prohibited nor discouraged from providing banking services to customers of any specific class or type, as permitted by law or regulation,” the agencies stated.
Read More
- Bitcoin Competes with Gold, Not Currency, Says Fed Reserve Chairman
- NYC Mayor Eric Adams Taunts Critics, Celebrates Bitcoin Gains
- Shytoshi Kusama Reveals Shocking Details Behind $HAWK Airdrop
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
