United States Congressman Tom Emmer, the majority whip of the House of Representatives, has once again reiterated his concerns, saying that the federal government is using the recent banking crisis as an excuse for an unfair crackdown on crypto.
Emmer accused the government of “weaponizing” regulatory powers to stifle innovation and competition in the burgeoning digital asset space.
US Congressman blasts FDIC
Emmer write a letter for the Chairman of the FDIC Martin Gruenberg was, highlighting the recent decision of the FDIC and the suspicion that the agency is trying to kill cryptocurrency.
The Minnesota representative cited allegations made by Signature Bank board member and former U.S. Representative Barney Frank, who reportedly characterized the FDIC’s action against Signature as a “strong anti-crypto message” rather than a concern for the bank’s viability.
Emmer wrote:
“These measures to combat the new instability in the banking sector, manifested by dangerous government policies and unprecedented increases in interest rates, are inappropriate and could lead to further financial instability.”
Emmer wanted to know what advice the FDIC is giving banking organizations to help manage the risk of rising interest rates.
Emmer also asked the FDIC if it has advised banks not to provide banking services to crypto companies, or if it has openly or secretly warned banks that if they start new crypto clients, they will face stricter regulation.
Today, I sent a letter to FDIC Chairman Gruenberg regarding reports that the FDIC is fighting new instability in the banking sector to clean up legal crypto activity from the US 👇 pic.twitter.com/fDmaA0XGWv
– Tom Emmer (@GOPMajorityWhip) March 15, 2023
Image: PYMNTS
Nonstop Crackdown on Crypto
Washington regulators, led by the FDIC, have been accused of heavy-handed tactics in their dealings with the growing cryptocurrency industry.
Many insiders claim that the FDIC and other agencies have used their power to disrupt companies and stifle innovation, in an effort to maintain their grip on the financial sector.
In recent years, cryptocurrencies like Bitcoin and Ethereum have exploded in popularity, offering consumers an alternative to traditional banking and financial institutions.
But the government has been slow to catch on, and many insiders believe that regulators are deliberately dragging their feet to keep the crypto industry on its toes.
BTCUSD dropping from the $25k handle and trades at $24,972 on the daily chart at TradingView.com.
Critics point to several recent incidents as evidence of regulatory overreach. For example, the FDIC has been accused forcing banks to cut ties with crypto companiesmaking it difficult to access basic banking services like checking accounts and loans.
In some cases, banks have even frozen the accounts of crypto companies without warning, causing chaos and disruption.
Emmer is one of many people in the nation’s capital who are pushing to increase the dialogue on cryptocurrency.
The Legislature requested a response from the FDIC by 5 p.m. on March 24, 2023.
-Images shown are from the New Republic