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Senator Pat Toomey: “FDIC interferes with the banking of crypto companies”

US Republican Congressman Pat Toomey, having studied the recommendations sent by the FDIC to credit institutions, said that the regulator is putting pressure on banks.

US Senator Pat Toomey sent a letter to Acting Director of the Federal Deposit Insurance Corporation (FDIC) Martin Gruenberg. The letter says the FDIC may be pressuring banks to stop them from providing services to crypto companies.

“Stakeholders” provided Toomey with supporting documents that the federal banking regulator was trying to “keep banks from doing business with licensed crypto companies,” even though the provision of services to these companies is legally permitted. In the letter, Toomey urges the regulator to confirm whether the FDIC has indeed recommended banks not to serve crypto companies, and if so, why.

“According to reports we have verified, staff at FDIC headquarters in Washington, D.C. are urging regional FDIC offices to send letters to several banks asking them to refrain from expanding relationships with crypto-related companies without providing any legal basis to do so. . It is my understanding that in one or more of these cases, the bank planned to provide customers with access to the cryptocurrency company’s trading platform through the bank’s mobile app or internet banking app,” Toomey wrote.

In his letter, he refers to Choke Point, an initiative by the FDIC and the US Department of Justice that aimed to put pressure on banks not to provide services to lenders accused of financial fraud dealing with arms dealers. The senator suggests that the FDIC has recommended a “downgrade” of the bank’s loan to crypto companies.

Recall that in April, the FDIC sent letters to almost 5,000 banks, expressing concern about the growing popularity of digital assets.

Source: Bits

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