Members of the Republican-led Oversight Committee have started a probe into debanking allegations.
As Democrats seek to examine Trump’s potential conflicts involving cryptocurrency, House Republicans have shifted their focus to alleged debanking practices.
The Oversight Committee, led by Republicans, has contacted CEOs of crypto organizations as part of its investigation into reports of debanking related to digital assets.
In a letter dated January 24, Chair James Comer informed six leaders in the crypto sector that the committee would investigate whether financial institutions or U.S. government officials were involved in debanking certain individuals.
Public statements from Hayden Adams of Uniswap Labs, Brian Armstrong of Coinbase, Jesse Powell of Kraken, and David Marcus of Lightspark have partially shaped the investigation, which will seek input from the Blockchain Association and other industry stakeholders.
“The Committee seeks to ensure that entrepreneurs are not unfairly targeted and, by extension, that all Americans are able to participate in US markets without fear of retaliation through illicit measures undertaken by financial institutions or federal regulators,” wrote Representative Comer.
The phrase “Operation Chokepoint 2.0” refers to claims that federal authorities, including the FDIC, have played a role in prompting financial institutions to debank individuals connected to the cryptocurrency sector.
It references “Operation Choke Point,” a project that the Obama administration launched to oversee banks dealing with high-risk industries like payday lending.
Coinbase launched a Freedom of Information Act lawsuit in 2024, aiming to obtain records from the FDIC regarding its correspondence with banks involved in crypto activities.
In 2022, the FDIC instructed certain banks to cease digital asset operations, citing regulatory uncertainties, as revealed in letters released by the exchange.
Read also: Senator Lummis warns against FDIC destroying crypto records related to Operation Chokepoint 2.0
In a November statement, Marc Andreessen, co-founder of the venture capital firm Andreessen Horowitz, claimed that debanking efforts targeted “disfavored tech startups.”
On January 24, a16z announced plans to shut its UK offices and prioritize the US market, explaining that the decision stemmed from the crypto policies of the newly inaugurated Trump administration.
In response to President Donald Trump’s launch of his memecoin on January 17, Democratic lawmakers from the House Oversight Committee, currently in the minority, pushed for an investigation into possible conflicts of interest.
According to ranking member Gerald Connolly, the token might pose “serious national security concerns” by creating potential foreign financial entanglements.
Since the 119th session of the US Congress began on January 3, Republicans have focused their debanking investigation on potential political motives, making it one of their first major policy initiatives.
At the time of publication, the Oversight Committee’s calendar did not include any relevant hearings.
