Senator Pat Toomey revealed that the FDIC is strongarming banks against working with crypto companies.
US Senator Pat Toomey says his office has received complaints that the Federal Deposit Insurance Corporation (FDIC) is asking banks to curtail their involvement with crypto-related companies, despite the fact that the involvement is perfectly legal. As a result, Toomey sent correspondence to the acting chairman of FDIC Martin Gruenberg asking for the government agency to explain its stance on crypto.
“According to whistleblower communications that we have corroborated, personnel in the FDIC’s Washington, D.C., headquarters are urging FDIC regional offices to send letters to multiple banks requesting that they refrain from expanding relationships with crypto-related companies, without providing any legal basis for sending such letters,” Toomey wrote in the letter.
The FDIC is tasked with ensuring the stability of the banking system. They are funded by banks and in the event of closure, they protect American citizens’ bank accounts up to 250k USD.
The FDIC’s actions are raising alarms for the crypto-friendly senator. “Given the FDIC’s involvement under your leadership in the Obama administration’s notorious Operation Choke Point, which sought to coerce banks into denying services to legal yet politically disfavored businesses, it is important to better...
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