{"id":20393,"date":"2025-01-17T10:00:24","date_gmt":"2025-01-17T08:00:24","guid":{"rendered":"https:\/\/forklog.com\/en\/cynthia-lummis-accuses-fdic-of-hiding-crypto-oversight-documents\/"},"modified":"2025-01-17T10:00:24","modified_gmt":"2025-01-17T08:00:24","slug":"cynthia-lummis-accuses-fdic-of-hiding-crypto-oversight-documents","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/cynthia-lummis-accuses-fdic-of-hiding-crypto-oversight-documents\/","title":{"rendered":"Cynthia Lummis accuses FDIC of hiding crypto-oversight documents"},"content":{"rendered":"<p>The Federal Deposit Insurance Corporation (FDIC) could face criminal prosecution if it did in fact destroy documents related to crypto oversight, according to a letter from Wyoming senator Cynthia Lummis.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The FDIC is attempting to hide Operation Chokepoint 2.0 and the FDIC must preserve all documents related to digital assets immediately. Tim Scott and I will get to the bottom of it. <a href=\"https:\/\/t.co\/98uLVVs60D\">pic.twitter.com\/98uLVVs60D<\/a><\/p>\n<p>\u2014 Senator Cynthia Lummis (@SenLummis) <a href=\"https:\/\/twitter.com\/SenLummis\/status\/1879972485342650408?ref_src=twsrc%5Etfw\">January 16, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In her letter, Lummis cites Operation Choke Point 2.0, a reference to a 2013 Department of Justice initiative aimed at restricting banking services for \u201chigh-risk\u201d industries, including microfinance firms and firearms merchants. Participants in the crypto industry say similar methods are now being used against digital assets.<\/p>\n<p>According to the letter, unnamed FDIC representatives reported the destruction of documents related to cryptocurrency oversight.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWhistleblowers also told me that the [the agency] leadership is closely monitoring employees\u2019 access to these materials to prevent their transfer to the Senate before they are destroyed, and that some staff have been threatened with lawsuits to stop them from speaking out,\u201d Lummis stressed.<\/p>\n<\/blockquote>\n<p>She called the alleged actions unacceptable and unlawful. The senator demanded the preservation of documentation related to the agency\u2019s activities on digital assets from January 1, 2022, including:<\/p>\n<ul class=\"wp-block-list\">\n<li>supervision and resolution of Signature Bank;<\/li>\n<li>supervision and liquidation of Silvergate Bank;<\/li>\n<li>supervision of all insured depository institutions that provided or sought to provide services in the field of digital assets;<\/li>\n<li>planned and executed enforcement actions related to cryptocurrencies.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf it turns out that you [FDIC chair Martin Gruenberg] or your staff knowingly destroyed materials or attempted to obstruct the Senate\u2019s oversight functions, I will promptly refer materials to the U.S. Department of Justice for criminal prosecution,\u201d Lummis concluded.<\/p>\n<\/blockquote>\n<p>In August 2022, Republican senator Pat Toomey asked the FDIC to confirm or deny instances of pressure on banks over their work with cryptocurrency companies. He said sources reported improper actions by leadership.<\/p>\n<p>Late in 2024 the story continued \u2014 <a href=\"https:\/\/forklog.com\/en\/news\/fdic-pressured-banks-to-halt-crypto-activities-coinbase-reveals\">Coinbase revealed letters<\/a> from two years earlier urging financial institutions to halt operations with digital assets. Earlier, the exchange sued the SEC and the FDIC over their attempts to \u201ccut off\u201d the crypto industry from the banking sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Deposit Insurance Corporation (FDIC) could face criminal prosecution if it did in fact destroy documents related to crypto oversight, according to a letter from Wyoming senator Cynthia Lummis. The FDIC is attempting to hide Operation Chokepoint 2.0 and the FDIC must preserve all documents related to digital assets immediately. Tim Scott and I [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1229,1725,36,26],"class_list":["post-20393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-banks-and-fintech","tag-fdic","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=20393"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/20392"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=20393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=20393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=20393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}