Congress Begins Investigating Crypto Debanking and Operation Choke Point 2.0

The US House of Representatives is officially investigating whether leading crypto companies were secretly “debanked” during the Biden administration.

On Friday, Rep. House Oversight Committee Chairman James Comer (R-Ky) told numerous industry founders and lobbyists that the investigation is already underway.

“The committee … is investigating improper debanking of individuals and entities based on political views or involvement in certain industries such as cryptocurrency and blockchain,” Comer wrote, in a letter sent to Andreessen Horowitz co-founder Marc Andreessen, Coinbase CEO Brian Armstrong and UniSwap founder Hayden Adams, among others.

For years, top crypto executives have alleged that former President Joe Biden’s administration pressured US banks to deny them service as a means to strangle the industry’s ability to function.

Although numerous Biden officials — including former SEC head Gary Gensler — have investigated, dubbed any involvement in such a plot “Operation Choke Point 2.0,” Recently disclosed correspondences between the FDIC and member banks appear to be a coordinated push to freeze the acceptance of crypto in America’s banking system.

In November, Andreessen claimed to have direct knowledge of Over during an appearance on Joe Rogan’s podcast 30 Tech Foundersmany of whom work in Crypto, who suddenly lost access to banking services during Biden’s time in office.

Friday’s letter explicitly mentioned that interview, asking Andreessen – and others with similar knowledge – to come up with specific details about this alleged debanking.

The letter also ties the perceived economic persecution of crypto leaders to that of Trump family members, including Melania Trump. In her recent autobiography, quoted in today’s correspondence, the First Lady claimed that both she and her son, Barron, were also de-banked during the Biden years.

“These examples are surprising and the committee is investigating whether this debanking practice comes from the financial institutions themselves or from implicit or explicit pressure from government regulators,” Chairman Comer wrote.

Crypto leaders already seem eager to collaborate with the research.

‘Legal crypto organizations and individuals need bank accounts to pay rent, pay taxes and pay employees – recover them. These fundamental financial services are wrong and should never happen in the United States of America,” Kristin Smith, CEO of the Blockchain Association, a crypto Lobby group, said in a statement shared with Declutter. “We would like to get to the bottom of this and end this unlawful exercise once and for all.”

Donald Trump’s return to the White House this week has already created a seismic shift in the federal government’s approach to crypto.

On Thursday, the president signed a sweeping crypto bill executive order This could soon pave the way for a strategic government crypto reserve. Hours later, the newly registered SEC withdrawn SAB 121an agency rule that discouraged US banks from holding crypto.

Even employees of the federal agencies accused of participating in Operation Choke Point 2.0 have become more outspoken in recent weeks. Earlier this month, Travis Hill, vice chairman of the FDIC, called one speech For the regulator to review its approach to digital assets and “end all choke point tactics.”

Edited by Andrew Hayward