Republicans urge action on market structure bill over debanking claims
Republicans released a report claiming the Biden administration debanked crypto firms, urging passage of the CLARITY Act.Summary
Republican lawmakers on the House Financial Services Committee and Oversight Subcommittee released a final report alleging that the previous Biden administration engaged in the "debanking of digital assets" by pressuring banks to cut off services to crypto companies using vague rules and aggressive enforcement, actions they termed "Operation Choke Point 2.0."
The report concluded that legislative action is necessary to provide clarity for the industry, specifically urging Congress to enact the Digital Asset Market Structure legislation, known as the CLARITY Act. They argue this bill will reverse the SEC's "regulation by enforcement approach" and ensure banks can lawfully engage with the digital asset ecosystem.
The report cited instances where regulators, including the FDIC, OCC, and SEC, allegedly took actions—such as sending "pause" letters or imposing "additional red tape"—that resulted in at least 30 entities and individuals in the digital asset space being debanked. The bill passed the House in July and is currently under consideration in Senate committees, with Senate Banking Chair Tim Scott aiming for it to be signed into law by early 2026.
(Source：Cointelegraph)