Investigation into Crypto Banking Services
Rep. French Hill has announced plans to increase scrutiny on regulators’ alleged efforts to restrict banking services for crypto businesses. This comes following concerns raised by industry leaders and recent statements made by a16z co-founder Marc Andreessen.
Concerns Raised
Hill expressed his concerns during a financial technology hearing on Dec. 3, where industry leaders provided testimony. He emphasized the importance of legal businesses having access to banking services and stated that the committee would thoroughly investigate these issues in the next Congress.
Operation Chokepoint 2.0
Andreessen’s recent discussion on the Joe Rogan podcast highlighted federal authorities pressuring banks to terminate accounts linked to crypto and other industries. This has reignited fears of “Operation Choke Point 2.0,” aimed at restricting banking access for specific sectors.
Testimonies from Industry Executives
Executives from Stellar Development Foundation and Anchorage Digital testified during the hearing, citing challenges in maintaining banking relationships. Stellar CEO Denelle Dixon mentioned reaching out to multiple banks without receiving clear reasons for rejections.
Congressional Shifts and Policy Changes
Hill’s remarks coincide with upcoming changes in the House Financial Services Committee leadership. With President Donald Trump vowing to end Operation Choke Point-like regulations, there could be a shift in Congress’s approach to crypto and financial access.
Stablecoin Regulation Debate
The hearing also addressed the ongoing debate on stablecoin regulation, with questions raised on state regulator oversight. Hill remains optimistic about advancing crypto-related legislation despite time constraints, while Rep. Maxine Waters hopes for progress before the new Congress begins.
