Now pro-crypto US congressmen decided to use common law rights to get clarity on why crypto companies are not getting Banking partners, despite there being no Crypto banking ban in the country.
Crypto 2022 saw the downfall & bankruptcy of several crypto companies like Celsius, Voyager, BlockFi, Genesis Trading, FTX, Alameda Research, etc. In Q4 2022, many crypto entrepreneurs reported that they were failing to get banking partners in the US. At that time the situation was not much worse but in Q1 2023 the situation got worse, as the majority of the crypto-friendly banks collapsed.
Recently U.S. House representatives French Hill, Patrick McHenry, and Bill Huizenga sent a joint letter to the Federal Deposit and Insurance Commission (FDIC).
Through the letter, Congressmen asked why the Crypto companies are not getting banking partners or banking services in America.
“Today, we are seeing the resurgence of coordinated action by the federal prudential regulators to suppress innovation in the United States. There is no clearer example than in the digital asset ecosystem,” the Letter read.
US lawmakers noted that US financial regulatory bodies already issued anti-crypto guidelines for banks in Q4 2021, Q2 2022, & Jan 2023 to keep the banking institutions away from crypto firms. According to the letter, these things are helpful to understand why banks are under pressure & why they’re not openly providing banking services to digital assets-focused service providers.
Congressmen tried to explain that crypto-related business or activity is not a fraud or illegal activity and also clarified that the downfall of the FTX exchange was a part of internal fraud because of a lack of strict crypto regulation policy.
In this way, US lawmakers tried to explain through the letter that government agencies should work to prohibit the engagement of bad actors & fraud activities from this sector, instead of “de-risking the digital asset industry.”
Read also: Fed report notes crypto is not responsible behind US banking crisis