TLDR
- Coinbase CLO Paul Grewal will testify before Congress on February 6, 2025, regarding allegations of regulatory pressure on banks to deny services to crypto companies
- The hearing titled “Operation Choke Point 2.0” will investigate claims that federal regulators, including FDIC, coordinated efforts to limit crypto’s access to banking
- Recent FOIA documents revealed FDIC discouraged banks from offering services built on public blockchain networks
- Marc Andreessen claimed over 30 tech founders had their bank accounts closed during Biden’s presidency
- House Oversight Committee launched a formal investigation into alleged financial blacklisting of crypto companies
A congressional hearing scheduled for February 6, 2025, will examine allegations that federal regulators pressured banks to cut off financial services to cryptocurrency companies. The hearing, titled “Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs,” brings together industry leaders and experts to testify before the Subcommittee on Oversight and Investigations of the Committee on Financial Services.
Paul Grewal, Chief Legal Officer of Coinbase, will lead the testimony alongside other industry executives. These include MARA Holdings CEO Fred Thiel, WSPN CEO Austin Campbell, and Anchorage Digital CEO Nathan McCauley. Financial and legal experts Stephen Gannon of Davis Wright Tremaine LLP and Mike Ring of Old Glory Bank will also provide testimony.
I’m testifying at the @FinancialCmte’s oversight hearing looking into the past clandestine and undemocratic campaign to cut off crypto from banking. On behalf of @Coinbase, I’m proud to help shed light on the unfair treatment of our industry and thank @FinancialCmte and… pic.twitter.com/TDIVu1cdW1
— paulgrewal.eth (@iampaulgrewal) February 3, 2025
The hearing comes after venture capitalist Marc Andreessen’s November 2024 appearance on Joe Rogan’s podcast, where he claimed more than 30 tech founders, many working in crypto, had their bank accounts suddenly closed during the Biden presidency. This revelation sparked renewed interest in what some industry observers call a pattern of coordinated banking restrictions.
Documents obtained by Coinbase through the Freedom of Information Act (FOIA) revealed that the Federal Deposit Insurance Corporation (FDIC) actively discouraged banks from offering services built on public blockchain networks. These unredacted documents suggest the FDIC directed banks to limit their exposure to digital asset firms.
House Oversight Committee Chair Rep. James Comer (R-KY) launched a formal investigation into these claims in January 2025. The committee sent letters to various crypto leaders requesting evidence of cases where companies were denied banking services. Among the recipients were Coinbase, Uniswap Labs, and the Blockchain Association.
The term “Operation Choke Point 2.0” refers to alleged similarities with a previous Obama-era program. The original Operation Choke Point targeted industries deemed high-risk, including gun sellers and payday lenders, by pressuring banks to limit their services to these sectors.
Grewal expressed his commitment to addressing these issues in a post on X, stating,
“I’m testifying at the @FinancialCmte’s oversight hearing looking into the past clandestine and undemocratic campaign to cut off crypto from banking. On behalf of Coinbase, I’m proud to help shed light on the unfair treatment of our industry.”
The February 6 hearing aims to assess several key areas. These include examining how crypto firms and employees have been affected by regulatory scrutiny, investigating the role of financial regulators in limiting banking access to digital assets, and identifying necessary policy measures to address industry concerns.
Both the Senate Banking Committee and the House Financial Services Committee will conduct separate hearings on the matter. The investigation comes at a time when the U.S. stance on digital assets continues to evolve under the Trump administration.
Critics argue that these alleged banking restrictions represent a form of regulatory overreach. They claim it creates unfair barriers for legitimate businesses operating in the cryptocurrency sector.
The previous Biden administration denied any coordinated effort to block crypto firms from accessing banking services. Former SEC Chair Gary Gensler also rejected claims of an orchestrated campaign against the industry.
The Subcommittee’s memorandum indicates the hearing will provide insight into how regulatory policies shape the financial landscape for digital assets. It will also examine whether new legislation is needed to address concerns about banking access and regulatory oversight.
The House Committee on Oversight and Government Reform’s January 24 letter marked a formal step in investigating these claims. The committee specifically stated it was “investigating improper debanking of individuals and entities based on political viewpoints or involvement in certain industries such as cryptocurrency and blockchain.”
As of the announcement, the FDIC had not responded to media requests for comment on these allegations.
