Congress scrutinizes crypto debanking claims

Congress is investigating allegations that U.S. regulators pressured banks to cut ties with cryptocurrency firms. Sen. Tim Scott, chair of the Senate Banking Committee, led the inquiry, where Nathan McCauley, chief executive of Anchorage Digital, testified about the challenges faced in securing banking services. He said: “We had extreme difficulty finding new bank partners,” highlighting the impact of regulatory actions from 2021 to 2023. The scrutiny intensified following a report by Nic Carter, which suggested a coordinated effort to marginalize the crypto sector. The ongoing probe includes testimonies from various industry leaders, with the House Subcommittee on Oversight and Investigations continuing to examine the implications of these regulatory pressures on the crypto industry.