Federal Reserve Chair Jerome Powell urged regulators to reassess the refusal of banking services to crypto companies, addressing the topic during a Senate hearing.
Jerome Powell's statement
Speaking at a Senate Banking Committee hearing on February 11, Jerome Powell said it was time for agencies to reassess reports that crypto businesses are being denied access to the U.S. banking system.
Impact of Operation 'Choke Point 2.0'
Crypto industry leaders have criticized Operation 'Choke Point 2.0', an alleged coordinated attempt to block banking services to crypto firms. After crypto CEOs raised their concerns, big tech executives joined in with similar claims.
Congress's reaction to crypto firms debanking
Crypto debanking became a major topic on Capitol Hill following investigations by Coinbase and Nic Carter. U.S. Congress has launched its own investigations, with even skeptics like Senator Elizabeth Warren supporting further scrutiny of the issue.
Powell's statements and ongoing Congressional investigations signal potential changes in the banking regulators' stance towards crypto firms.
