Rep. French Hill has announced that he will intensify his scrutiny over alleged attempts by regulators, to isolate crypto businesses from banks. He cited concerns expressed by leaders in the industry and Marc Andreessen’s recent statements.
Hill, who may be in line to become the next chair of the House Financial Services Committee, spoke out about his concerns on Wednesday, Dec. 3 during an event that featured several leading industry figures.
Hill Said:
“Legal businesses in this country must have access to banking and financial services. This committee will thoroughly investigate these issues into the next Congress.”
Operation Chokepoint 2
Andreessen appeared recently on Joe Rogan’s podcast to discuss federal authorities pressuring banks into terminating accounts related to crypto and other industries.
Concerns about the claim have been re-ignited “Operation Choke Point 2.0,”The phrase is often used to refer to suspected attempts by certain industries to limit banking access. Operation Choke Point, the original Justice Department initiative that was launched in 2013, is a program to restrict financial services provided by industries considered high risk for fraud. This includes payday lenders.
During the hearing, executives from Anchorage Digital and Stellar Development Foundation testified that their respective companies were affected. Stellar CEO Denelle Dixon described challenges in maintaining banking relationships.
She replied:
“We’ve had to reach out to ten different banks, and no reason was provided for the rejections.”
The dynamics of Congressional policy
Hill’s comments come as the House Financial Services Committee’s leadership is set to change. Hill, along with other crypto-friendly Republicans, are running for the current chair, Patrick McHenry (R-N.C.).
As the newly elected Donald Trump pledges to put an end to regulatory efforts similar in nature as Operation Choke Point., this year’s Congress could be a turning point for crypto-related issues and access.
In a report from 2024, the Federal Deposit Insurance Corporation noted that banks are allowed to serve specific industries. Hill and others have questioned whether these policies are applied uniformly.
In addition to the debate about stablecoins, lawmakers also questioned what level of oversight they should delegate to states regulators. Hill is optimistic that crypto-related bills will be passed despite the time constraint.
He said:
“We’ve made significant progress, and I believe we can reach a consensus.”
Maxine Waters (D-Calif.), who worked on the bipartisan framework for stablecoins with McHenry, has expressed her hope that a deal could be struck before year’s end. She acknowledged, however, the difficulties posed by an overcrowded legislative schedule.
Waters said:
“I’ve always appreciated Mr. McHenry’s efforts to find common ground. Hopefully, we can see meaningful progress before the new Congress begins.”
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