The US chief attorney at Crypto Exchange Coinbase (Coin) testified on Thursday about abuses of powers from regulators that set barriers between banks and crypto companies during a House Financial Services Committee hearing, the latest in the digital asset industry. It marked a reversal of progress. Washington’s policy resistance.
Coinbase Chief Legal Officer Paul Growal’s complaints about “fatigue regulation” have been met with widespread agreement from Republican lawmakers eager to criticize the Biden administration’s crypto performance. Lawmakers also agreed with Growal’s view that financial regulators such as the FDIC have publicly argued that they were not opposed to crypto while keeping banks away from the industry.
The House hearing, led by the Panel’s Oversight Subcommittee, became the in-person in-person hearing of the Senate Banking Committee on Wednesday, which delved into the code “debanking” in the United States.
“Biden regulators have resorted to vague interpretive regulatory letters that threaten banks with negative test scores and fines if they continue their partnership with digital asset companies,” said the Pennsylvania Republican, who heads the House Subcommittee. President Dan Moother said. “This is a serious overreach and not only undermines innovation, but also directly harms consumers by restricting access to new financial products.”
Meanwhile, panel Democrats argue that it is appropriate to flag concerns over President Donald Trump’s own crypto business efforts and warn banks against ties with sectors covered in volatile fraud. I pushed it back.
“As my Republican friend has shown, regulators asking banks to ask banks to consider risks related to the cryptocurrency industry will not leave,” the subcommittee said. said Al Green, a Texas Rep., a ranking Democrat. “Regulators have urged banks to be careful when dealing with this new and potentially dangerous industry.”
Frustrated Judge
The issue has been placed under the light of council scrutiny on the second day running, and Coinbase is basked in a combination of positive court sentiment and reversal of FDIC policy. Legal pursuit of FDIC documents under the Freedom of Information Act is not only on the road, but a US District Court judge in the District of Columbia angered how FDIC resisted a request to communicate with banks regarding crypto. I did. .
Read more: US regulators asked banks to avoid the characters obtained by Coinbase’s publication
The FDIC lawyer asked Judge Ana Reyes to give the agency extra time while adjusting under new leadership, but the judge said, “I’m not sure who your management is.” I won’t,” he refused. She argued that the FDIC’s position on the case was “haunting” and wanted not only to reject the delay, but also to “dramatically speed up.” The judge also requested response to accusations that the regulators may have destroyed documents related to the case.
“If you can’t figure out whether the document has been destroyed or if the document has been destroyed, if I find that an investigation is being conducted now, do you understand that now? “Just Court” the official asked.
FDIC Turnaround
The FDIC jumped this week to release more documents before court deadlines, and Chairman Travis Hill, who was promoted last month when President Donald Trump took office, will be asked to review the agency’s supervisory communications with banks on crypto. He said he ordered staff. Meanwhile, he said, regulators publicly posted “a large batch of documents.”
“The delegate chair has begun to correct this wrong,” Coinbase Chief Legal Officer Paul Growal said in a post on social media site X, “More and more discoveries have been found. It’s necessary.”
The FDIC is stealing much of the heat of US bank regulators’ efforts to limit banks’ exposure to customers, but Sen. Cynthia Ramis revealed Wednesday’s Federal Reserve document I did. This is the name the industry adopted to characterize a series of informal behind the scenes behaviours carried out by regulators in such a way that regulators put pressure on them to condemn the code. The Fed’s policy appears to suggest a scrutiny of regulations on bankers engaged in controversial speeches and activities.
Interest for the House Financial Services Committee continues next week at a February 11 hearing entitled “The Golden Age of Digital Assets: Charts of Advances.” That phrase, “golden age,” reflects Trump’s code emperor David Sachs said he was coming to the industry at his first press conference.
