The Subcommittee on Oversight and Investigations of the Committee on Financial Services has announced an upcoming hearing on Feb. 6 titled “Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs.” This hearing aims to delve into the impact of regulatory actions on the cryptocurrency industry.
The main objectives of the hearing include assessing how regulatory scrutiny has affected crypto firms and their employees, examining the role of financial regulators in limiting banking access to the digital asset ecosystem, and identifying potential policy measures to address concerns raised by industry participants.
The hearing is expected to shed light on how regulatory policies are shaping the financial landscape for digital assets and whether legislative action is necessary to address issues related to banking access and regulatory overreach. Among the witnesses slated to testify at the hearing are Paul Grewal, the chief legal officer of Coinbase, and Fred Thiel, the CEO of Marathon Digital.
In a recent social media post, Grewal expressed his pride in representing Coinbase at the hearing and thanked the Financial Services GOP and the US House Committee on Financial Services for their attention to this critical issue.
The focus of the hearing will be on the alleged harmful effects of Operation Chokepoint 2.0, a term used to describe regulatory actions under the Biden administration that have reportedly targeted crypto firms’ access to banking services. Critics argue that Operation Chokepoint initially began during the Obama administration, where regulators pressured banks to cut ties with specific industries.
The Subcommittee contends that the Biden Administration has extended similar practices to the crypto sector, potentially limiting financial services access for companies and individuals involved in digital assets. Recently, the House Committee on Oversight and Government Reform sent formal letters to several crypto firms and organizations, including Coinbase, Uniswap Labs, and Blockchain Association, requesting evidence of instances where these companies were denied banking services.
Overall, the hearing is expected to provide valuable insights into the challenges faced by the cryptocurrency industry due to regulatory actions and explore potential solutions to ensure fair treatment and access to financial services for all industry participants.