Congress Probes Crypto Debanking With Upcoming Hearings

The U.S. Congress is intensifying its scrutiny of the alleged debanking of cryptocurrency firms, a practice where banks abruptly end relationships with clients, often under regulatory pressure. Republican leaders, including Senate Banking Committee Chair Tim Scott and House Oversight Committee Chair James Comer, are spearheading the investigation, with hearings scheduled for early February. The term 'Operation Chokepoint 2.0' has been used by critics to describe the alleged targeted debanking under the previous Biden administration, likening it to past efforts to isolate risky businesses. Notable figures and firms in the crypto industry, such as Coinbase and Uniswap, have been asked to provide information on their experiences, with some, like Uniswap's CEO Hayden Adams, reporting sudden account closures. The investigations aim to determine whether these actions were initiated by banks independently or due to implicit government pressure, as both the House and Senate committees seek to protect lawful businesses from discriminatory practices. The outcome could have significant implications for the U.S. crypto industry's ability to access essential financial services.