"Congress Demands Unredacted Crypto Letters: FDIC's Role in Industry Suppression"
1min read The House Oversight Committee has requested unredacted letters from the Federal Deposit Insurance Corporation (FDIC) to investigate allegations of suppression in the crypto industry. The committee, led by Chairman James Comer (R-Ky), seeks to understand the relationship between financial institutions and government regulators regarding crypto-related activities.
Last month, the FDIC released redacted documents, including "pause letters" sent to 24 banks and communications involving other regulated institutions. In his letter to FDIC acting chairman Travis Hill, Comer requested unredacted copies of these documents to better understand the regulatory approach to crypto activities.
Hill has previously criticized the FDIC's approach to crypto under the Biden administration, stating that the agency created an impression of being closed to institutions interested in digital assets. Comer shares Hill's concern that regulatory hurdles may have deterred banks from engaging in crypto activities, potentially impacting business operations and driving innovation overseas.
The committee is concerned that overreach by government regulators may have arbitrarily suppressed industries deemed unfavorable, preventing entities from accessing cash for payroll or driving technological and financial innovation overseas.
