The US-based non-profit Blockchain Association (BA) has requested information from regulators in the country regarding the alleged de-banking of crypto companies. Over the past month, the sector has seen some of its most prominent actors lose access to their accounts, the ability to process transfers in fiat currency, and more.
The collapse of three major pro-crypto financial institutions, Silicon Valley Bank, Silvergate, and Signature, is poised to add fuel to the fire. New industries lost their most important financial partners, and while many struggled to find new homes for their capital and pay their salaries, the US continued to attack.
Crypto Companies De-Banking the US Government on Purpose?
According to an official statement, BA requested information from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency. The non-profit claims that this agency may have “incorrectly contributed to the failure” of pro-crypto banks.
As mentioned, the new industry must open a new account without the institution, but with many difficulties, according to the Blockchain Association. Non-profit claims:
The crypto industry is building the next generation of the internet and financial services. This is important work that has created tens of thousands of American jobs. Businesses need bank accounts to pay employees, vendors, and taxes. It is a legitimate business in the United States and should be treated like any other law-abiding business.
Chief Policy Officer at the Blockchain Association Jake Chervinsky claimed that the nonprofit has received “disturbing reports” of companies losing accounts without “notice and no explanation.” In this sense, Chervinsky believes that the US is trying to cut a new sector of the banking system.
This strategy could prove fatal for these companies and the digital asset industry. If BA can prove that US regulators are abusing their power to crack down on crypto, they can make the case that they are “breaking the law” and acting illegally. Chervinsky said:
It took a long time to get a response to our FOIA request, but we’re working aggressively, and we’ll share what we can as soon as we can. In the meantime, we need your help. If debanking directly affects you or your company, we want to know about it.
The Company may share information through the following email address: [email protected]. BA confirmed that all information and data will remain confidential.
Sleeping With the Fishes, the US Sends a Message
As Bitcoinist reported this week, there have been many rumors in the industry recently about the role of the US government in the collapse of pro-crypto banks. Former US Congressman and Signature Bank board member Barney Frank believes regulators in the country are sending an “anti-crypto message.”
Until the financial institution was shut down by regulators, Frank claimed it was solvent and operational. In that sense, the former US Congressman added:
I think part of what’s happening is that regulators want to send a very strong anti-crypto message. We are the poster child for not having fundamental-based insolvency.
Some community members believe that the US government is conducting a cover-up operation on the industry, dubbed “Operation Chokepoint 2.0.” According to this theory, the U.S. is trying to tap into the financial capabilities of the new industry by cutting off access to the country’s banks.
– confirmed that he did not say this because of his pro-crypto bias (already skeptical)
– said there must be a way for banks to support crypto, and can be completely responsible
– think it’s wrong for banks to be deputized as crypto regulators, it should be left to the SEC pic.twitter.com/4RLZoAPwMI— nic carter 🌠 (@nic__carter) March 15, 2023
Recent events, and the essence of BA’s request, seem to confirm that there may be some truth to Operation Chokepoint.