Cynthia Lummis Accuses FDIC of Destroying Operation Chokepoint 2.0 Records

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Senator Cynthia Lummis of Wyoming has penned a formal missive to Martin Gruenberg, the Chairman of the Federal Deposit Insurance Corporation (FDIC), voicing her apprehensions in light of allegations made by insiders within the corporation.

As reported by a Republican lawmaker, people have reached out to her office claiming that the company might be disposing of records related to its digital asset operations, presumably without proper documentation or archival procedures.

The Alleged Activities

In a letter sent on Thursday, Lummis emphasized allegations that potential whistleblowers might be under close supervision by management, as a strategy to hinder communications with her office. She also mentioned the possibility of legal retaliation if employees tried to contact her.

She condemned the purported activities in a separate statement, saying:

It’s completely unacceptable and against the law for the FDIC to be accused of attempting to hide or destroy documents regarding Operation Chokepoint 2.0 from the U.S. Senate.

Discussions primarily focus on “Operation Chokepoint 2.0,” a plan that, on the surface, seems aimed at limiting the cryptocurrency industry’s ability to utilize conventional banking and financial infrastructure.

Last year, apprehensions about how regulators handle cryptocurrency-related banking became quite noticeable. In August, key figures in the crypto industry held discussions with White House officials, among them Mark Cuban, Anthony Scaramucci, along with representatives from Coinbase, Kraken, and Uniswap, to address their interactions.

At the meeting, Deputy Treasury Secretary Wally Adeyemo disputed claims of a deliberate effort to bar cryptocurrencies from the financial infrastructure. Yet, when someone inquired about individuals who had faced limited banking access due to White House regulations, it was reported that most attendees indicated they had encountered such situations.

In June 2024, Coinbase filed a lawsuit against the FDIC, alleging that the agency tried to disconnect cryptocurrencies from conventional banking systems. However, the FDIC has refuted such claims, stating that they do not intentionally target the crypto industry. The 2024 Risk Review report by the FDIC clarified that financial institutions are neither forbidden nor discouraged from offering banking services to any particular class or type of customer, including those involved in cryptocurrencies.

Senator Asks for Preservation of Crypto Records

In her communication to Gruenberg, Lummis requested that the regulatory body keep all documents pertaining to their digital asset transactions starting from January 1, 2022. She outlined particular records to be saved, such as correspondence related to Signature Bank, Silvergate Bank, and any crypto-related disciplinary actions.

Furthermore, she asked for the conservation of instructional resources and documents detailing the FDIC’s collaboration with other federal departments regarding digital assets.

As a crypto investor, I’m particularly interested in the senator’s proposal that emphasizes the importance of preserving records related to digital assets like Bitcoin, Ethereum, and other cryptocurrencies. It’s crucial to ensure metadata is securely stored and not tampered with or deleted, as this electronic information is vital for maintaining the integrity and transparency of our investments.

As a researcher delving into this matter, let me clarify that I’ve been made aware of a stern warning issued by the lawmaker. If it were to be uncovered that any individual within the FDIC intentionally destroyed crucial evidence or impeded Senate scrutiny, immediate referrals for potential criminal charges would be forwarded to the U.S. Department of Justice. Emphasizing the paramount importance of transparency in this situation, Lummis has vowed to uphold the public’s right to know and will strive to provide the answers they are entitled to.

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2025-01-17 23:24