The House Oversight Committee is investigating claims that US banks have been unfairly cutting ties with cryptocurrency companies and individuals. This practice, often called “de-banking,” allegedly targets those involved in the crypto industry.
The Investigation’s Scope
The committee sent letters to several prominent figures in the crypto space, including executives from Uniswap, Andreessen Horowitz, Coinbase, Lightspark, and Kraken, as well as the head of the Blockchain Association. They’re looking into whether this “de-banking” is happening and if it’s preventing Americans from participating in the crypto market. The committee is particularly interested in the experiences of those affected and how this has impacted their businesses.
Industry Claims of Political Targeting
The investigation was spurred by claims that the de-banking is politically motivated. Marc Andreessen, a prominent venture capitalist, stated in a recent interview that over 30 crypto founders have been de-banked in the last four years due to political targeting. Coinbase CEO Brian Armstrong echoed these claims, suggesting that Senator Elizabeth Warren and Gary Gensler (chair of the SEC) played a significant role. Armstrong even linked these actions to the Democrats’ electoral losses. Kraken co-founder Jesse Powell also weighed in, referring to the situation as “Choke Point 2.0,” alleging a deliberate effort to suppress the crypto industry over the past four years.
What’s Next?
The House Oversight Committee’s investigation aims to determine the extent of this alleged “de-banking” and whether it constitutes unfair or unlawful practices. The outcome could have significant implications for the future of the cryptocurrency industry in the United States.
