United States Congressman Tom Emmer, the majority whip of the House of Representatives, has once has reiterated his concerns, saying that the federal government is using the recent banking crisis as an excuse for its unjust crackdown on crypto.
Emmer accused the government of “weaponizing” its regulatory powers to stifle innovation and competition in the burgeoning digital asset space.
U.S. Congressman Blasts The FDIC
Emmer wrote a letter to FDIC Chairman Martin Gruenberg on Wednesday, highlighting recent FDIC decisions and suspicions that the agency is attempting to extinguish cryptocurrency.
The Minnesota representative referred to allegations made by Signature Bank board member and former U.S. Representative Barney Frank, who reportedly described the FDIC’s action against Signature as a “strong anti-crypto message” rather than a concern about the bank’s viability.
Emmer wrote:
“These actions to weaponize recent instability in the banking sector, catalyzed by catastrophic government spending and unprecedented interest rate hikes, are deeply inappropriate and could lead to broader financial instability.”
Emmer wanted to know what advice the FDIC gave to banking organizations to help them manage the risk of rising interest rates.
Emmer also asked the FDIC if it had advised banks not to give banking services to crypto firms, or if it had openly or tacitly warned banks that if they embarked on new crypto clients, they would face tighter regulation.
Today, I sent a letter to FDIC Chairman Gruenberg regarding reports that the FDIC is weaponizing recent instability in the banking sector to purge legal crypto activity from the U.S.
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— Tom Emmer (@GOPMajorityWhip) March 15, 2023
Relentless Crackdown On Crypto
Washington regulators, led by the FDIC, have been accused of heavy-handed tactics in their dealings with the burgeoning cryptocurrency industry.
Many insiders claim that the FDIC and other agencies have been using their power to bully companies and stifle innovation, in an attempt to maintain their stranglehold on the financial sector.
In recent years, cryptocurrencies like Bitcoin and Ethereum have exploded in popularity, offering consumers an alternative to traditional banking and financial institutions.
But the government has been slow to catch up, and many insiders believe that regulators are deliberately dragging their feet in order to keep the crypto industry under their thumb.
Critics point to a number of recent incidents as evidence of regulatory overreach. For example, the FDIC has been accused of pressuring banks to sever ties with crypto companies, making it difficult for them to access basic banking services like checking accounts and loans.
In some cases, banks have even frozen the accounts of crypto companies without warning, causing chaos and disruption.
Emmer is one of many people in the nation’s capital who are pushing for increased dialogue on cryptocurrency.
The legislator asked for a response from the FDIC by 5 p.m. on March 24, 2023.
-Featured image from The New Republic
