Senator Cynthia Lummis has issued a warning to the Federal Deposit Insurance Corporation (FDIC) relating to allegations of doc destruction associated to “Operation Choke Point 2.0” (OCP 2.0). Whistleblowers have accused the company of withholding and destroying supplies tied to the alleged anti-crypto marketing campaign. This has intensified scrutiny over the Federal Deposit Insurance Corporation’s practices.
Senator Cynthia Lummis Demands FDIC Preserve Documents Tied To OCP 2.0
In a letter dated January 16, 2025, Senator Cynthia Lummis addressed FDIC Chair Marty Gruenberg, demanding speedy motion to protect all paperwork linked to OCP 2.0. The initiative allegedly concerned a multi-agency effort to restrict crypto companies’ entry to banking companies.
The pro-crypto Lummis warned that any destruction of those paperwork or retaliation in opposition to whistleblowers may end in felony referrals to the Department of Justice. She emphasised that obstructing Senate oversight is prohibited and unacceptable. The letter additionally referenced whistleblower claims that workers entry to those supplies is being intently monitored to stop disclosure.
Addressing, Marty Gruenberg, the FDIC Chair, pro-crypto Senator Cynthia Lummis added,
“This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately.”
Moreover, this warning comes amid stories that Donald Trump’s advisory staff, together with Elon Musk, is contemplating eliminating the FDIC as a part of a banking sector overhaul. The proposed adjustments embrace merging the FDIC, OCC, and Federal Reserve’s nonmonetary capabilities to streamline regulation. Advisors have additionally floated the thought of transferring deposit insurance coverage duties to the Treasury Department.
Whistleblower Allegations and FDIC Compliance Issues
Whistleblowers allege that FDIC administration has taken steps to stop the discharge of important data tied to OCP 2.0. These efforts reportedly embrace threats of authorized motion in opposition to workers who converse out and deliberate makes an attempt to destroy key paperwork.
The controversy extends to the wind-down of Signature Bank and Silvergate Bank, two establishments with sturdy ties to the crypto trade. These closures have been central to ongoing investigations into the broader crackdown on crypto companies.
Notably, the pro-crypto Senator Cynthia Lummis not too long ago probed the U.S. Marshals over their proposed plans to promote seized Bitcoin. Lummis flagged issues in regards to the timing of the sale, citing its contradiction with President-elect Donald Trump’s Bitcoin Reserve agenda.
Scott Bessent Opposes CBDC Amid Crypto Debate
Meanwhile, Scott Bessent, President Donald Trump’s Treasury decide, has voiced opposition to the creation of a U.S. central financial institution digital forex (CBDC). In a current Senate listening to, Bessent argued that the U.S. greenback already gives safe funding options, making a CBDC pointless.
President @realDonaldTrump’s nominee for Treasury Secretary, Scott Bessent: “On CBDC’s, I see no reason for the U.S. to have a central bank digital currency.”
Agreed. Now let’s make sure that it is in regulation. pic.twitter.com/HaVD9Wjlkc
— Tom Emmer (@GOPMajorityWhip) January 16, 2025
Bessent’s stance aligns with Trump’s broader assist for Bitcoin and skepticism of overseas CBDCs. He emphasised that Bitcoin mining safeguards in opposition to different nations’ adoption of centralized digital currencies. This reinforces Trump’s pro-crypto insurance policies and highlights the administration’s choice for decentralized monetary methods.
Nonetheless, most not too long ago, Trump’s Treasury nominee Scott Bessent confronted scrutiny from Senator Elizabeth Warren earlier than his Senate Finance Committee affirmation listening to. Warren’s 31-page letter questions Bessent’s views on crypto regulation, together with the potential authority of OFAC over stablecoins to fight dangers like cash laundering.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with 4 years {of professional} expertise, having contributed considerably to numerous media retailers on cryptocurrency traits and applied sciences. With over 4000 revealed articles throughout varied media retailers, he goals to tell, educate and introduce extra folks to the Blockchain and DeFi world. Outside of his journalism profession, Ronny enjoys the fun of motorcycle using, exploring new trails and landscapes.
Disclaimer: The offered content material might embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.
