Why This U.S. Congressman Is Accusing FDIC Of Using Bank Crisis To Attack Crypto

Republican Congressman Ted Budd is accusing the US Federal Deposit Insurance Corporation (FDIC) of using the bank crisis caused by the coronavirus pandemic as an excuse to target and attack cryptocurrency. In a letter addressed to the head of the FDIC, Budd argued that the agency’s recent moves to restrict access to banking services for crypto companies could harm innovation and competitiveness in the emerging digital asset industry. The lawmaker urged the FDIC to work with stakeholders to develop a clear regulatory framework that would foster the growth and development of the crypto ecosystem in the US.

United States Congressman Tom Emmer, who serves as the majority whip of the House of Representatives, has expressed his concerns that the federal government is unfairly clamping down on cryptocurrencies, using the recent banking crisis as an excuse. Emmer has accused the government of using its regulatory powers to stifle competition and innovation in the digital asset space. The Congressman recently wrote a letter to the chairman of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, highlighting concerns that the agency is attempting to quash cryptocurrency. Emmer’s letter asked the FDIC to clarify whether it had advised banks not to offer crypto firms banking services or warned them that they would face tighter regulation if they embarked on new crypto clients. Critics have accused the FDIC of bullying companies and stifling innovation in an attempt to maintain their stranglehold on the financial sector. Emmer is advocating for more dialogue on cryptocurrency and asked for a response from the FDIC by March 24, 2023.

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