On Wednesday, Tom Emmer, the Republican US Congressman from Minnesota, revealed that he sent a letter to Martin Gruenberg, Chairman of the Federal Deposit Insurance Corporation (FDIC), regarding reports that the FDIC is ” using recent instability as a weapon” in the US banking industry to “purge legal crypto activity” from the United States. Specifically, Emmer asked Gruenberg if the FDIC instructed banks not to provide banking services to cryptocurrency companies.
Majority Republican Whip Emmer Questions FDIC Involvement in Purge of Legal Crypto Activity
tom emmera Republican politician from Minnesota, sent a letter the FDIC chairman questioning whether the agency directed banks not to provide services to digital currency firms. “Recent reports indicate that federal financial regulators have effectively armed their authorities over the past few months to purge legal digital asset entities and opportunities from the United States,” Emmer’s letter read.
The Minnesota congressman added:
Individuals across the industry, including former House Financial Services Committee Chairman Barney Frank, highlighted the specific nature of these regulatory efforts to “target” financial institutions and “send a message to keep people away from of cryptocurrencies”.
Emmer has been consulting other US lawmakers and agencies about their actions against crypto companies, including interrogation Securities and Exchange Commission (SEC) Chairman Gary Gensler on actions taken during the arrest of disgraced FTX co-founder Sam Bankman-Fried. The politician 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 lawmaker Barney Frank stem from the Signature Bank board member’s comment about his surprise at Signature’s collapse. Frank said that he suspected there was an “anti-crypto message” behind the bank’s disappearance. The New York State Department of Financial Services disagrees, explaining that placing Signature in FDIC receivership “has nothing to do with cryptocurrency.”
Despite the fact that the regulator denied such allegations, Emmer’s letter to Gruenberg from the FDIC implicitly asks the president whether the FDIC specifically ordered banks not to provide banking services to cryptocurrency companies.
“Have you communicated, explicitly or implicitly, to any banks that their supervision will be more onerous in some way if they accept new (or maintain) digital asset customers,” the politician asked. Emmer insists that Gruenberg provide the information as soon as possible and no later than 5:00 pm on March 24, 2023.
What do you think about the regulation of cryptocurrencies in the United States and the potential impact it could have on the future of the industry? Do you think regulators are unfairly targeting crypto companies? Share your thoughts in the comments section below.
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