The U. S. House of Representatives is formally investigating whether leading crypto companies were quietly “debanked” during the Biden administration.  ,
On Friday, Rep. James Comer (R-KY), head of the House Oversight Committee, advised several business founders and lobbyists that the investigation is currently underway.
” The Committee … is investigating improper debanking of individuals and entities based on political viewpoints 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 decades, top crypto managers have claimed that former President Joe Biden’s leadership pressured U. S. businesses to refuse them services, as a means to kill the company’s ability to function.  ,
Although many Trump officials, including former SEC brain Gary Gensler, have denied being involved in a story known as” Operation Choke Point 2.0,” recently revealed correspondence between the FDIC and associate banks do appear to show a coordinated effort to stop crypto adoption in America’s bank program.  ,
In November, Andreessen claimed during an appearance on Joe Rogan’s radio to have strong knowledge of over 30 tech members, many of whom operate in crypto, who instantly lost access to finance providers during Biden’s time in office.
Friday’s letter explicitly mentioned that interview, asking Andreessen—and others with similar knowledge—to come forward with specific details about this alleged debanking.
The letter also makes connections between Melania Trump’s alleged economic persecution of crypto leaders and Melania Trump’s alleged economic persecution of Trump family members. In her recent autobiography, which is quoted in today’s correspondence, the First Lady claimed that both she and her son, Barron, were also debanked during the Biden years.
The Committee is looking into whether these debanking practices stem from the financial institutions themselves or from any other implicit or explicit pressure from government regulators, according to Chair Comer.  ,
Cryptocurrency leaders already show an interest in assisting the investigation.  ,
” Lawful crypto organizations and individuals need bank accounts to pay rent, pay taxes, and pay employees—denying them these basic financial services is wrong and should never happen in the United States of America”, Kristin Smith, CEO of the Blockchain Association, a crypto lobbying group, said in a statement shared with . We’re determined to find the root of this and end this unethical behavior once and for all.
The federal government’s approach to crypto has already changed significantly since Donald Trump’s White House visit this week.
The president signed a comprehensive crypto executive order on Thursday that could soon open the door for a strategic government crypto reserve. Hours later, the newly Republican-controlled SEC rescinded SAB 121, an agency rule that discouraged U. S. banks from holding crypto.  ,
In recent weeks, federal agency employees who are accused of participating in Operation Choke Point 2.0 have spoken out even more openly. In a speech earlier this month, Travis Hill, Vice Chair of the FDIC, urged the regulator to “put an end to any and all Choke Point-like tactics.”
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