US Congress starts investigating crypto debanking allegations

The U.S. House Oversight Committee has launched an investigation into alleged debanking practices targeting crypto companies. 

On Friday, Committee Chair James Comer sent letters to prominent crypto executives, including Coinbase CEO Brian Armstrong and Uniswap founder Hayden Adams, seeking information about reported banking restrictions.

The inquiry aims to assess whether financial institutions acted independently or were influenced by government pressure to deny services to crypto firms. 

These allegations, referred to as “Operation Choke Point 2.0,” draw parallels to an Obama-era initiative that targeted industries deemed high-risk for fraud. Recent reports suggest that federal regulators may have coordinated efforts to restrict crypto firms’ access to traditional banking services.

Crypto’s regulatory turbulence in recent years

The investigation follows years of complaints from crypto founders about abrupt account closures and banking hurdles, particularly during the Biden administration. 

Lawmakers have expressed concerns that debanking stifles innovation and pushes technological advancements overseas. 

The committee also highlighted potential political discrimination, citing claims from industry leaders and First Lady Melania Trump’s memoir, which described a similar experience.