Federal Reserve President Jerome Powell told the US Senate that regulators should take “a new look” on the Crypto debacle.
Speaking in a Senate Banking Committee Hearing On 11 February, Powell said that it was time for agencies to report the reports of crypto businesses to the US banking system again.
Crypto industry leaders have long criticized the impact of Operation Chok Point 2.0, a word that was used to describe an alleged coordinated attempt for crypto firms. After the CEO of Crypto raised concerns, the big technical officials also came forward with the same claims as unfair treatment.
“We do not deliberately do these things,” Powell said, “We need to work on it.” The Fed Chair answered a question by Tim Scott Chairman of the Senate Banking Committee. Republican Senator Scott also asked if Powell would be committed to ending unconstitutional debanking practices. “Yes” Powell declared during the hearing.
“I am committed to working with you on that … Look, I think it is appropriate to keep a new look at the debanking.” Powell told Sen Scott and Committee.
Crypto Debanking became a major topic on Capital Hill last year, after investigation under the leadership of Coinbase, a partner of Castle Island Ventures and Nick Carter.
Carter highlighted the evidence related to the signature and the silvergate bank, showing that the regulators consider the crypto behavior of the banks while taking their final decision.
The Coinbase sued the Federal Deposit Insurance Corporation, discovering the “poses letters” issued to the financial institutions and a contingent of OCP 2.0 documents. Senator Synthia Lummis warned FDIC employees against destroying any document amid a two-company investigation.
Both the Congress chambers have now started an investigation on the issue. The MPs at the Senate and the House of Representatives heard the crypto debanking last week, where crypto-scriptic MLAs such as Senator Elizabeth Warren called for further investigation of concerns raised by the digital asset platform.
