The U.S. House Oversight Committee has initiated an inquiry into alleged debanking practices aimed at cryptocurrency companies.
On Friday, Committee Chair James Comer sent out letters to key cryptocurrency executives, including Coinbase CEO Brian Armstrong and Uniswap founder Hayden Adams, requesting details regarding reported banking limitations.
The purpose of this inquiry is to determine whether financial institutions acted of their own accord or were swayed by government influence to withhold services from cryptocurrency firms.
These claims, known as “Operation Choke Point 2.0,” draw similarities to an initiative from the Obama administration that targeted sectors considered high-risk for fraud. Recent reports indicate that federal regulators may have collaborated to limit crypto firms’ access to conventional banking services.
Recent regulatory challenges for the crypto sector
This investigation comes on the heels of numerous complaints from cryptocurrency founders regarding sudden account closures and banking obstacles, particularly during the Biden administration.
Lawmakers have raised alarms that debanking hinders innovation and drives technological progress overseas.
The committee also underlined the possibility of political bias, referencing assertions from industry leaders and insights from First Lady Melania Trump’s memoir, which detailed a comparable experience.
