Four US senators wrote an open letter to the head of Federal agencies to address the enforcement actions taken by the US government agencies against crypto companies.
In 2022, the Crypto community saw big ups & downs in the price of crypto assets. The situation in the crypto sector got worse in May when high volatility in the crypto market resulted in the meltdown of Terra(Luna) & TerraUSD stablecoin badly to ground level further in Q4 several crypto companies collapsed badly with FTX exchange bankruptcy e.g Alameda Research, Crypto lender BlockFi, Genesis Global Trading, Celsius network collapsed. Many top crypto companies in the crypto sector also faced loss with the FTX exchange, as they were holding funds on the FTX exchange. FTX went bankrupt in Nov 2022 and filed for bankruptcy under the chapter 11 code in a US bankruptcy district court along with more than 130 affiliated companies.
Last week, Four United States Republican senators wrote & sent a letter to the heads of federal banking regulatory agencies, asking the main reason why the US authorities are taking strict action against the crypto companies & using the Obama administration’s Operation Choke Point against disfavored industries.
The letter noted that regulatory bodies are misusing their power and they are trying to interfere in the works outside their authority.
“We are especially worried that overreach behavior by the banking regulators will inevitably bleed into other legal industries,” the letter read.
The letter also asked many questions to bring clarity on the ongoing US enforcement action against crypto companies. In particular, they asked how the crypto companies can provide services smoothly under such cease & desist orders for banking partners and whether agencies are planning to issue similar guidance for other industries.
Senators Mike Crapo, Thom Tillis, and Steve Daines contributed to this letter. Through these efforts, these people are trying to bring a better level of clarity for the crypto companies to operate businesses with regulatory clarity in the country.