House Committee Investigates Federal Pressure on Banks to Drop Crypto Clients

The U.S. House Oversight and Government Reform Committee has initiated an investigation into allegations that federal regulators have been exerting pressure on major banks to sever ties with lawful cryptocurrency clients. This probe comes amidst growing political scrutiny and explosive claims that banks have been coerced into dropping crypto clients, despite the legality of their operations. The investigation aims to uncover the extent of this pressure and its potential impact on the financial sector and the broader cryptocurrency industry.

The allegations suggest that federal regulators have been using their influence to discourage banks from engaging with cryptocurrency firms, even those that comply with all relevant regulations. This pressure has reportedly led to several banks terminating their relationships with crypto clients, raising concerns about the fairness and transparency of regulatory actions. The House Committee's investigation seeks to determine whether these actions are justified or if they represent an overreach of regulatory authority.

Chair James Comer of the House Oversight and Government Reform Committee announced on June 25 that the committee is seeking records from the U.S. Office of the Comptroller of the Currency (OCC) to determine if major banks have been coerced into debanking lawful American entities. Comer’s letter to Acting Comptroller Rodney Hood requests internal communications and enforcement details, particularly surrounding the OCC’s issuance and subsequent March 7 revocation of Interpretive Letter 1179, which had laid the groundwork for federally chartered banks to engage with digital asset businesses. Comer wrote that the Committee on Oversight and Government Reform is investigating the improper debanking of individuals and entities based on political viewpoints or involvement in certain industries such as cryptocurrency and blockchain.

The Committee’s investigation builds on earlier outreach, including a Jan. 24 request to blockchain companies and a Feb. 27 letter to the Federal Deposit Insurance Corporation (FDIC) about experiences of being debanked. Comer cited whistleblower concerns that many of the nation’s largest financial institutions, under OCC jurisdiction, were not adequately addressed in previous agency responses. He underscored the importance of examining how regulators may be influencing or deterring institutional interest in digital assets. Comer stated that as the OCC is the primary regulator of banks chartered under the National Bank Act—specifically the nation’s largest banks with assets between $50 billion and $3 trillion—the Committee seeks information about the OCC’s enforcement of financial institution’s interest and expansion into crypto and crypto-related businesses.

In the wake of these developments, the OCC issued new guidance for national banks and federal savings associations concerning crypto-asset activities. Interpretive Letter 1183, released in March 2025, formally rescinded Interpretive Letter 1179, thereby removing the requirement for supervisory non-objection for actions including crypto-asset custody, stablecoin reserve services, and participation in distributed ledger technology (DLT) networks. Additionally, the OCC withdrew from select interagency statements addressing crypto-asset risks. While banks are no longer required to obtain explicit OCC approval, they must still conduct crypto-related operations in a manner deemed safe and sound, comply with relevant laws, and implement rigorous risk management frameworks.

The probe is part of a broader effort to scrutinize the regulatory environment for cryptocurrencies. Recent developments, such as the SEC's review of the "Frankenstein patchwork of rules" on cryptocurrency firms and access to private markets, indicate a growing focus on regulatory clarity and consistency. The new policy requiring Fannie and Freddie to develop risk mitigation strategies and only accept crypto assets that can be verified on U.S.-regulated exchanges further underscores the need for a coherent regulatory framework.

The investigation also comes at a time when the cryptocurrency industry is facing increased regulatory scrutiny. The Trump administration's embrace of stablecoin regulation as a pillar of its "crypto-positive" agenda, and the establishment of a Working Group on Digital Asset, highlight the evolving regulatory landscape. The House Committee's probe is expected to shed light on the motivations behind federal regulators' actions and their potential impact on the financial sector and the broader cryptocurrency industry.

The investigation is likely to have significant implications for the cryptocurrency industry. If the allegations are substantiated, it could lead to calls for greater transparency and accountability in regulatory actions. It could also prompt a re-evaluation of the regulatory framework for cryptocurrencies, with a focus on ensuring that regulations are fair, transparent, and consistent. The outcome of the investigation will be closely watched by industry stakeholders, who are eager to see greater regulatory clarity and consistency in the cryptocurrency space.