The Daily: US House asks crypto execs about alleged debanking, a16z closes UK office and more

It's Friday! 🎉 In today's newsletter, Coinbase, Kraken and Uniswap Labs CEOs are asked for input on alleged debanking in the cryptocurrency industry, Andreessen Horowitz will close its UK office as it doubles down on America, the European Central Bank is pushing for a digital euro and more.

Meanwhile, Silk Road operator Ross Ulbricht said he's looking forward to "re-engaging with the free world” after spending over a decade in prison.

Let's get started.

US House committee probes crypto execs over alleged debanking

The U.S. House Committee on Oversight and Government Reform is investigating alleged debanking in the crypto industry.

• The agency reached out to CEOs of major firms like Coinbase, Kraken and Uniswap Labs for input on the matter.
• The committee, led by Rep. James Comer (R-Ky.), seeks to determine whether debanking originates from financial institutions or government actions.
• Crypto firms have faced significant challenges in maintaining banking relationships, particularly following warnings from regulatory agencies in the aftermath of the FTX exchange collapse in late 2022.
• Allegations of a coordinated crackdown, dubbed "Operation Choke Point 2.0," have drawn comparisons to an Obama-era initiative targeting high-risk industries.
• Lawmakers have vowed to investigate debanking, with the Senate Banking Committee planning to hold a hearing on the issue next week.

A16z closes UK office to focus on Trump's America

Andreessen Horowitz (a16z) will close its London office in an effort to scale back its UK expansion.

• The firm's decision follows significant crypto-related advancements in the U.S. under the Trump Administration and reflects shifting priorities.
• While the UK has passed crypto-friendly policies, such as tailored regulations and amendments to allow staking and custody operations, its regulators maintain stringent guidelines that have driven some crypto firms to exit the market.
• A16z remains committed to investing globally, including in the UK, which is home to the second-largest tech industry after the United States.

ECB pushes for digital euro in response to Trump's crypto executive order

European Central Bank (ECB) board member Piero Cipollone emphasized the need for a digital euro to counter U.S. President Donald Trump's Executive Order promoting dollar-backed stablecoins globally, which could threaten traditional banks in the Eurozone.

• Trump's EO aims to bolster U.S. leadership in digital financial technology and protect the hegemony of the greenback by supporting the growth of legitimate dollar-pegged stablecoins worldwide.
• Cipollone warned that such U.S. initiatives could disintermediate European banks and lead to fewer clients and fees.
• A digital euro would function as a wallet system guaranteed by the ECB and operated by private entities, but its launch depends on legislative approval.

Solana-based stablecoin supply surpasses $10 billion

The total stablecoin supply on Solana has surpassed $10 billion for the first time, driven primarily by the growth of Circle’s USDC.

• With $8.2 billion worth tokens circulating, USDC accounts for nearly 80% of Solana’s total stablecoin supply.
• The surge aligns with the stablecoin's increased usage in Solana DeFi protocols and heightened trading activity around memecoins.
• The recent Trump memecoin launch significantly impacted the Solana ecosystem, contributing to a record-high token price of over $260 and daily transaction fees exceeding $33 million.

Fogo raises $8 million at $100 million token valuation

The Fogo Foundation raised $8 million in under two hours via the Echo crowdfunding platform founded by Crypto Twitter mainstay Cobie. Over 3,000 angel investors participated in the platform's unique community-funding model.

• Fogo is a new Solana Virtual Machine-based blockchain designed for high-speed, low-cost, parallel transaction processing that uses the Firedancer validator client to enable "institutional-grade" finance on-chain.
• Currently in devnet with over 54,000 TPS achieved, Fogo plans to launch its testnet in Q1 and mainnet in Q2 this year.

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