Rep. French Hill has announced plans to ramp up scrutiny of alleged efforts by regulators to cut off cryptocurrency businesses from banking services. This decision comes after concerns were raised by industry leaders and recent public statements made by a16z co-founder Marc Andreessen.
During a hearing on financial technology on Dec. 3, Hill, who is vying for a leadership position on the House Financial Services Committee next year, expressed his worries about the situation. He emphasized the importance of legal businesses in the country having access to banking and financial services and pledged to thoroughly investigate these issues in the upcoming Congress.
The discussion has been sparked by claims made by Andreessen on the Joe Rogan podcast regarding federal authorities pressuring banks to terminate accounts associated with crypto and other industries. This has reignited fears of a potential “Operation Choke Point 2.0,” which refers to suspected attempts to limit banking access for certain sectors. Stellar Development Foundation and Anchorage Digital executives testified during the hearing about the challenges they have faced in maintaining banking relationships.
As the leadership of the House Financial Services Committee is set to change with the retirement of current Chair Patrick McHenry, Hill and other pro-crypto Republicans are in contention for the position. With President Donald Trump promising to end regulatory efforts resembling Operation Choke Point, there may be a shift in Congress’s approach to crypto and financial access.
The Federal Deposit Insurance Corporation (FDIC) has stated that banking institutions are not prohibited from serving specific industries. However, Hill and other lawmakers have raised concerns about the uniform enforcement of such policies. The hearing also addressed the ongoing debate over stablecoin regulation, with lawmakers discussing the extent to which oversight should be delegated to state regulators.
Hill remains optimistic about advancing crypto-related legislation despite time constraints, stating that significant progress has already been made and expressing confidence in reaching a consensus. Rep. Maxine Waters, who has collaborated with McHenry on a bipartisan stablecoin framework, also hopes for meaningful progress before the new Congress begins, acknowledging the challenges posed by a busy legislative calendar.