House Republicans on the U.S. Oversight Committee are launching an investigation into allegations that individuals and entities connected to the cryptocurrency industry have been unfairly “debanked.” This move comes as Democrats continue to focus on former President Donald Trump’s potential crypto-related conflicts of interest.
GOP Probes Allegations of Crypto Industry Targeting
On January 24, House Oversight Committee Chair James Comer sent letters to six leaders in the cryptocurrency industry, including CEOs of major firms and associations. The letters aim to uncover whether U.S. government officials or financial institutions engaged in efforts to “debank” individuals or organizations based on their ties to digital assets.
This investigation builds on public comments made by prominent crypto figures, including:
- Hayden Adams, Uniswap Labs founder and CEO
- Brian Armstrong, Coinbase CEO
- Jesse Powell, Kraken founder
- David Marcus, Lightspark co-founder and CEO
Representative Comer stated that the committee is working to ensure fair market participation for all Americans. He emphasized the importance of preventing undue targeting or retaliation by financial institutions or federal regulators.
“Operation Chokepoint 2.0” Allegations
The term “Operation Chokepoint 2.0” has been used to describe claims that U.S. agencies, such as the Federal Deposit Insurance Corporation (FDIC), pressured banks to cut ties with crypto-related businesses. This alleged campaign mirrors the Obama-era initiative “Operation Choke Point,” which targeted banks working with high-risk industries like payday lenders.
Coinbase added to the debate by filing a Freedom of Information Act (FOIA) lawsuit against the FDIC in 2024. The lawsuit seeks records of communications between the FDIC and banks that were instructed to “pause” digital asset activities in response to regulatory uncertainty.
Industry Leaders and Criticism
Prominent industry players have also weighed in on the issue:
- Venture capitalist Marc Andreessen, co-founder of Andreessen Horowitz (a16z), claimed in November 2024 that debanking efforts unfairly targeted “disfavored tech startups.”
- On January 24, a16z announced plans to shutter its UK offices and refocus on the U.S. market, citing a crypto-friendly stance under the new Trump administration.
