Watchdog Group Better Markets Opposes Allegations of U.S. Government Entities Debanking Crypto Firms

Odaily News In a written statement released ahead of a Feb. 6 hearing of the U.S. House Financial Services Committee’s (HSFC) Oversight and Investigations Subcommittee, Shayna Olesiuk, director of bank policy at Wall Street watchdog group Better Markets, criticized some lawmakers and crypto industry leaders over claims by U.S. government entities that they are attempting to debank crypto companies, a plan dubbed “Operation Choke Point 2.0.”
Olesiuk said the Federal Deposit Insurance Corporation (FDIC) is responding to fintech companies "making false and misleading statements about deposit insurance coverage." The FDIC sent letters to banks in 2022, recommending "suspending all activities related to crypto assets." According to Olesiuk, the 22 letters the FDIC sent to crypto companies starting in 2022 are not binding, but warnings of possible enforcement actions. "Current banking rules limit the amount of information that can be shared publicly about the reasons for bank account closures. However, if banks are required to explain the reasons for closing an account, the likelihood of misunderstandings or malicious or discriminatory conclusions when closing an account will be reduced."