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Senator Lummis Warns FDIC Over Alleged Document Destruction Linked to Crypto Crackdown
In a strongly-worded letter, United States Senator Cynthia Lummis has demanded immediate action from the Federal Deposit Insurance Corporation (FDIC) in response to allegations of document destruction linked to an anti-crypto crackdown. The senator’s request comes as concerns mount over the agency’s potential role in suppressing information about its involvement in Operation Choke Point 2.0, a purported initiative aimed at restricting banking access for crypto businesses.
Senator Lummis’s letter, dated January 16, explicitly requests that the FDIC halt any further destruction of documents related to these allegations and ensure their preservation for Senate oversight purposes. The senator sternly warns against obstructing Congressional oversight, stating that such actions would be both illegal and unacceptable.
The controversy has sparked intense scrutiny over the FDIC’s practices and its alleged role in suppressing information about its involvement in anti-crypto initiatives. This comes amid reports that FDIC staff monitoring access to these documents is intended to prevent leaks tied to these anti-crypto efforts.
Senator Lummis further emphasized the potential legal implications for the agency, citing threats of criminal referrals by the Department of Justice should evidence be destroyed or tampered with. The senator also expressed concerns about the agency’s alleged attempts to suppress critical disclosures and silence whistleblowers.
The FDIC’s activities have come under intense scrutiny as a result of these allegations, raising questions about the agency’s role in the alleged anti-crypto campaign. This controversy has further fueled speculation surrounding President-elect Donald Trump’s advisory team, which is reportedly exploring significant reforms within the banking sector.
Potential changes proposed by the administration include eliminating the FDIC and transferring its duties to other agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Reserve’s non-monetary functions. The Treasury Department could potentially take on deposit insurance responsibilities, ultimately aiming to streamline financial regulations.
Meanwhile, the recent closures of Signature Bank and Silvergate Bank have drawn connections to the FDIC’s alleged role in suppressing information about its involvement in anti-crypto initiatives. As concerns surrounding these events continue to mount, Senator Lummis’ letter underscores the importance of transparency in these matters.
In related news, President-elect Trump’s nominee for Treasury Secretary, Scott Bessent, has publicly expressed opposition towards the creation of a U.S. central bank digital currency (CBDC). Instead, he advocates for decentralized systems and supports Bitcoin mining. Despite support from the pro-crypto community, Bessent faced scrutiny during his confirmation hearing, with Senator Elizabeth Warren questioning his views on crypto regulation and stablecoin oversight.
As this controversy continues to unfold, it remains to be seen how these events will impact the broader cryptocurrency landscape.
Source: cryptonewsland.com
