Banks are pushed to avoid giving services to crypto exchanges in the US

FDIC forces banks to avoid providing services to crypto exchanges. In a recent statement by famous Lawmaker Pat Toomey said that he got the news that the FDIC is preventing the local banks from giving services to different crypto exchanges even when they are doing nothing illegal.

Toomey’s Letter

After getting the news from several affected parties as well as whistleblower communities, Toomey wrote a letter directed to current FDIC Director Mr. Gruenbery, stating that he had got several statements from different authorities which claimed that the regulators of Federal banks are regularly trying to stop the local banks from doing their business with the lawful crypto platform even there is nothing illegal procedure involved.  The letter asked the regulators to confirm whether any higher officials had asked them to do so or not.

American Banker Response to Toomey’s Letter

Toomey referred to Operation Choke Point, an initiative of a retired FDIC worker whose primary purpose was to pressure the local banks not to provide any kind of services to the payday lenders and financial fraud charges. However, this also started appearing that FDIC is pressuring the banks not to give services to companies involved in high-level legal activities like gun selling. 

Toomey also wrote that based on his sources, personnel sitting in the FDIC’s Washington Headquarters are commanding the FDIC regional workers to send letters to the local banks to ask them to break their relationship with any crypto company. He also mentioned cases where banks had already planned to give customers access to different crypto exchanging platforms through their applications.

In reply to Toomey’s letter and statement, FDIC released a statement stating the FDIC is acting consistently with the high-level legal authorities to make sure the banks engaging in any kind of crypto-relating activities are doing the work so safely and soundly that customers are safe. This may involve FDIC requesting the banks to refrain from their relationships with any crypto platforms until their feedback is taken into account. It is a necessary action to take, keeping the risks in mind included in the crypto markets.

What are your thoughts on Toomey’s letter? Do you think that it was the right way to approach FDIC? Let us know in the comment below. And, if you found our content information, share it with your friends.

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