On Wednesday, Minnesota Republican US Congressman Tom Emmer revealed that he sent a letter to Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg regarding reports that the FDIC is “weaponizing recent instability” in the US banking industry to “clean up legal crypto activity ” from USA. Specifically, Emmer Gruenberg asked if the FDIC instructed banks not to provide banking services to cryptocurrency firms.
GOP Majority Whip Emmer questions the FDIC’s involvement in cleaning up legal crypto activity
Tom Emmera Republican politician from Minnesota, sent a letter to the chairman of the FDIC questioning whether the agency directed banks not to offer services to digital currency companies. “Recent reports indicate that federal financial regulators have effectively weaponized their authorities in recent months to purge legitimate digital assets and capabilities from the United States,” Emmer’s letter states.
The Minnesota congressman added:
Individuals from across the industry, including former House Financial Services Committee Chairman Barney Frank, highlighted the targeted nature of these regulatory efforts to “single out” financial institutions and “send a message to get people away from crypto.”
Emmer has asked other US lawmakers and agencies about their actions against crypto companies, including interrogative Securities and Exchange Commission (SEC) Chairman Gary Gensler on actions taken during the arrest of FTX’s disgraced co-founder, Sam Bankman-Fried. The politician has also introduced legislation that would prohibit the US central bank “from issuing a [central bank digital currency] directly to anyone.”
Emmer’s comments about former legislator Barney Frank stemmed from the Signature Bank board member’s comment about being surprised by Signature’s collapse. Frank said he suspected there was an “anti-crypto message” behind the bank’s demise. The New York State Department of Financial Services disagrees, explaining that placing Signature into receivership by the FDIC had “nothing to do with crypto.”
Despite the regulator’s denial of such allegations, Emmer’s letter to the FDIC’s Gruenberg implicitly asks the chairman whether the FDIC specifically instructed the banks not to provide banking services to cryptocurrency firms.
“Have you communicated – explicitly or implicitly – to any banks that their supervision will be more onerous in any way if they take on new (or maintain existing) digital asset clients,” the politician asked. Emmer insists that Gruenberg provide the information as soon as possible and no later than 17.00 24 March 2023.
Tags in this story
anti-crypto message, banking services, Barney Frank, central bank digital currency, co-founder, collapse, crypto activity, crypto companies, cryptocurrency, deposit insurance company, digital assets, digital currencies, FDIC, financial institutions, fintech, ftx, Gary Gensler, GOP, GOP Majority Whip, government oversight , Gruenberg , legal entities , purging , receivership , Regulatory Compliance , regulatory efforts , Republican lawmakers , SEC , Signature Bank , Targeted , tom emmer , US banking industry , US Central Bank , US Financial regulators , US lawmakers
What are your thoughts on the regulation of cryptocurrency in the US and the potential impact it could have on the future of the industry? Do you think regulators are unfairly targeting crypto businesses? Share your opinions in the comments section below.
Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
