U.S. Representative Tom Emmer, Republican of Minnesota, on Thursday said that reports that the FDIC is “purging legitimate crypto activity” from the United States “by using recent instability” in the U.S. banking industry Emmer revealed that he had sent a letter to Martin Gruenberg, Chairman of the Federal Deposit Insurance Corporation (FDIC). Specifically, Emmer asked Gruenberg whether the FDIC had instructed banks not to provide banking services to cryptocurrency companies.
GOP Majority Whip Emmer, questioning the FDIC’s involvement in the purge of legitimate crypto activity
The Minnesota congressman added that.
individuals across the industry, including former House Financial Services Committee Chairman Barney Frank, emphasized the targeted nature of these regulatory efforts to “single out” financial institutions and “send a message to keep people away from crypto.”
Emmer hasquestionedother U.S. legislators and agencies about their actions against the crypto business. Securities and Exchange Commission (SEC) Chairman Gary Gensler mentioned the actions taken during the arrest of FTX’s disgraced co-founder, Sam Bankman-Fried. The politician also introduced a bill that would prohibit the U.S. central bank from “issuing [central bank digital currency] directly to anyone.”
Emmer’s comments about former Assemblyman Barney Frank were prompted by comments from a Signature Bank director who said he was surprised by Signature Bank’s failure; Frank said he suspected an “anti-crypto message” was behind the bank’s failure. The New York State Department of Financial Services disagrees, explaining that Signature was placed in receivership by the FDIC for “nothing to do with crypto.”
Despite the regulator’s denial of such accusations, Emmer’s letter to the FDIC’s Gruenberg implicitly asks the chairman if the FDIC has specifically instructed banks not to provide banking services to cryptocurrency companies.
“Did you tell any bank, explicitly or implicitly, that taking on new digital asset customers (or retaining existing customers) would somehow increase its supervisory burden?” the politician asked. Emmer insisted that Gruenberg provide the information as soon as possible, but no later than 5 p.m. on March 24, 2023.
What are your thoughts on the regulation of cryptocurrencies in the US and its possible impact on the future of the industry? Do you think regulators are unfairly targeting the crypto business? Please share your thoughts in the comments section below.
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