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On Wednesday, Tom Emmer, the US Republican congressman from Minnesota, revealed he sent a letter to Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), regarding reports that the FDIC was “arming the recent instability” in the US banking industry. to “clean up legal crypto activity” from the United States. Specifically, Emmer asked Gruenberg whether the FDIC instructed banks not to provide banking services to cryptocurrency companies.
GOP Majority Whip Emmer Questions FDIC Involvement in Clean Up of Crypto Legal Activity
Tom Emera Republican politician from Minnesota, sending a letter to the chair of the FDIC questioning whether the agency is directing banks not to provide services to digital currency businesses. “Recent reports indicate that federal financial regulators have effectively weaponized 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 from across the industry, including former chairman of the House Financial Services Committee Barney Frank highlighted the targeted nature of these regulatory efforts to ‘select’ financial institutions and ‘sends a message to keep people away from crypto.’
Emmer has asked lawmakers and other US agencies about their actions on crypto businesses, incl question Securities and Exchange Commission (SEC) Chair Gary Gensler on actions taken during the arrest of disgraced FTX co-founder Sam Bankman-Fried. The politician has 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 MP Barney Frank stem from comments by a Signature Bank board member about his shock at Signature’s collapse. Frank said he suspects there was an “anti-crypto message” behind the bank’s death. The New York State Department of Financial Services disagrees and explains that placing a Signature into an FDIC recipient has “nothing to do with crypto.”
Despite the regulator’s denial of the allegations, Emmer’s letter to the Gruenberg FDIC implicitly asked the chairman whether the FDIC specifically directed banks not to provide banking services to cryptocurrency companies.
“Have you communicated – explicitly or implicitly – to any bank that their scrutiny will be tougher in any way if they take on new digital asset clients (or keep existing ones),” the politician asked. Emmer urged Gruenberg to provide the information as soon as possible and no later than 5:00 p.m. on March 24, 2023.
What do you think about cryptocurrency regulation in the United States and its potential impact on the future of this industry? Do you believe that regulators are unfairly targeting crypto businesses? Share your opinion in the comments section below.
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