Summary of the Investigation

The U.S. Senate Banking Committee is set to hold a hearing on February 5 regarding accusations that the Biden administration’s financial regulators obstructed crypto industry leaders access to banking services. The House Committee on Oversight is also investigating similar claims against some crypto founders and executives.

Key Points

• Senate hearing scheduled for February 5 on alleged debanking of crypto entities.
• Investigation includes inquiries into whether pressures originated from government regulators or financial institutions themselves.
• Concerns raised over regulators’ influence on banks to sever ties with crypto businesses, a practice referred to as Operation Chokepoint 2.0 by Republican lawmakers.

Quotes

“Debanking is un-American — every legal business deserves to be treated the same regardless of their political beliefs,” said Tim Scott. “弊も両サイドからの圧力があった。” (Translation: Unfortunately, this system has pressured financial institutions, leading them to cut off services to various entities.)

Context

This investigation follows the allegation that banking regulators were indirectly guiding financial institutions to avoid servicing the crypto sector under the pretext of managing risks associated with banking. While financial regulators have encouraged banks to exercise caution, some actions appear to stem from regulatory pressures. The ongoing investigations aim to clarify the motivations and implications of the alleged banking restrictions.