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

Odaily Planet Daily News In a written statement released before the February 6 hearing of the U.S. House Financial Services Committee (HSFC) Oversight and Investigations Subcommittee, Shayna Olesiuk, director of bank policy at Wall Street watchdog organization Better Markets, criticized some lawmakers and cryptocurrency industry leaders for the alleged attempt by U.S. government entities to debank cryptocurrency companies, a plan called "Operation Choke Point 2.0." Olesiuk said that 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, suggesting that "all activities related to crypto assets be suspended." According to Olesiuk, the 22 letters sent by the FDIC to crypto companies starting in 2022 are not binding, but warnings of possible enforcement actions. "Current bank rules limit the amount of information that can be shared publicly about bank account closure reasons, but if banks are required to explain the reasons for closing accounts, the likelihood of misunderstandings or malicious or discriminatory conclusions when closing accounts will be reduced."