House Oversight Committee Requests Unredacted Letters From FDIC To Probe Alleged Suppression of Crypto Industry

The House Committee on Oversight and Government Reform wants access to unredacted documents from the Federal Deposit Insurance Corporation (FDIC) to investigate allegations that banks were deliberately de-banking the crypto industry.

Last month, the FDIC released redacted documents related to its supervision of crypto-related activities, which include the so-called “pause letters” sent to 24 banks as well as communications and records involving other regulated institutions.

In his letter to FDIC acting chairman Travis Hill, House Oversight Committee Chairman James Comer (R-Ky) requests unredacted copies of the documents.

“The Committee requests unredacted versions of the aforementioned document and other previously released pause letters to better understand the relationship between relevant financial institutions and government regulators and their respective approaches to crypto-related activities.”

Hill has criticized the FDIC’s approach to crypto during the Biden administration, saying that the agency created an impression that it was closed to institutions interested in digital assets.

Comer says the committee shares Hill’s concern that regulatory hurdles deterred banks from engaging in crypto activities.

“The Committee is concerned that overreach by government regulators may have arbitrarily suppressed industries they deemed unfavorable, impacting business operations by preventing entities from accessing cash to fulfill payroll or driving technological and financial innovation overseas.”

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