Coinbase CLO to treat ‘Operation ChokePoint 2.0’ in the congress

The Chief Legal Officer of Coinbase, Paul Grewal, will testify to the US Congress this week, while legislators investigate allegations that federal supervisors intentionally put pressure on banking to take out financial services to crypto companies.

“I testify about the supervision of the @Financialcmte hearing session with looking at the previous clandestine and undemocratic campaign to cut off banking crypto,” Grewal said In a post on X. “On behalf of Coinbase, I am proud to help shed light on the unfair treatment of our industry.”

The “Operation Choke Point 2.0: the efforts of the BIDEN Administration to put Crypto in sight” comes in the midst of industry that shouts that American financial supervisors, including the Federal Deposit Insurance Corporation (FDIC), are involved in an unofficial Campaign – to limit cryptos access to bank to banking.

With the US’s position with regard to digital assets that shift under the board of President Donald Trump, the outcome of these hearings could be the future of Crypto’s role in the American financial system.

Grewal will testify alongside Mara Holdings CEO Fred Thiel, WSPN CEO Austin Campbell and Anchorage Digital CEO Nathan McCauley in in the front The subcommittee on supervision and investigation of the Financial Services Committee.

The laws will also hear from financial and legal experts, including Stephen Gannon from Davis Wright Tremaine LLP and Mike Ring of Old Glory Bank. More witnesses can still be added to the list.

The issue received renewed attention in November when venture capitalist Marc Andreessen claimed On Joe Rogan’s podcast that more than 30 tech founders, many in Crypto, had suddenly closed their bank accounts during the presidency of former President Joe Biden.

Last month, Huis Oversight Committee Chairman REP. James Comer (R-KY) a formal investigation into the alleged financial blacklist of crypto companies under the BIDEN Administration, in the midst of the increasing voltage between crypto companies and supervisors.

“The committee … is investigating incorrect debt of individuals and entities based on political views or involvement in certain industries such as cryptocurrency and blockchain,” Comer wrote in the letter sent to crypto leaders.

Not -tressed documents obtained For each coinbase suggests that the FDIC banks have ordered their exposure to digital activa companies, which expresses concern about potential scope of the regulations.

Crypto leaders claim that this was an effort led by the government to suppress the industry, similar to the original “Operation ChokePoint” under the Obama government, aimed at industries considered high-risk, such as arms sellers and payment day providers .

The previous BIDEN administration has refused any coordinated efforts to block crypto companies for access to bank access.

While regulatory officials, as former SEC chairman Gary Genslerhave denied the existence of an orchestrated effort, the evidence suggests differently.

The official hearing, planned for 6 February, will be carried out separately by both the Senate Bank Committee and the House Financial Services Committee.

The FDIC did not immediately respond to Decrypt’s request to comment.

Published by Sebastian Sinclair