The United States House of Representatives Committee on Oversight and Government Reform has begun investigating allegations that major players in the crypto industry have had their accounts closed by banks.
Background of the Allegations
In a letter to Uniswap Labs CEO Hayden Adams, Andreessen Horowitz partner Marc Andreessen, Coinbase CEO Brian Armstrong, Lightspark co-founder David Marcus, Kraken CEO Dave Ripley and Blockchain Association CEO Kristin Smith, the committee wrote: He stated that he wants to ensure that its citizens can participate in the US markets without worrying about negative effects from financial institutions or regulators.
Opinions of Industry Leaders
Marc Andreessen stated in an interview in 2024 that more than 30 founders’ accounts were closed by their banks as a result of political targeting in the last four years.
“Warren and Gensler attempted to illegally destroy our industry, and this was a major factor in Democrats losing the election. The Democratic party must realize that Warren is a weakness and must distance themselves from her if they have any hope of rebuilding…”
Coinbase CEO Brian Armstrong also supported these claims and stated that unethical and un-American practices took place during the Biden administration and that Elizabeth Warren was influential in this process.
“These events that took place under the Biden administration were one of the most unethical and un-American things that I can verify. My guess is that Elizabeth Warren’s signature is all over these events (Biden probably didn’t know this).”
Jesse Powell, co-founder of Kraken, said that the Choke Point 2.0 operation has aimed to hinder the crypto industry for the last four years.
“New banks perceived to be crypto-friendly have been illegally denied federal accounts. Existing crypto-friendly banks were eliminated through summary judgments. That’s why Bitcoin
$99,231.3 “We use it.”
The committee is investigating banks’ practice of closing accounts to individuals and organizations due to political views or activities in certain sectors, such as crypto and blockchain. It plans to meet with relevant parties to understand the impact of these practices on business operations.
Committee’s Research Purpose
The committee aims to examine the experiences of individuals and organizations in the crypto industry and the impact of debanking practices on their business, with the aim of ensuring that American citizens can participate in the US markets without worrying about negative effects from financial institutions.
The allegations from leaders in the crypto industry have brought to light serious concerns that financial institutions are targeting crypto-related companies for political and industry reasons. This situation requires an important evaluation in terms of the future of the crypto market and shaping the regulatory environment.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
