Michaela Alvez
Wyoming Senator Cynthia Lummis has expressed alarm over reports from whistleblowers claiming that the Federal Deposit Insurance Corporation (FDIC) destroyed key documents related to Operation Chokepoint 2.0 (OCP2.0) and withheld materials connected to the controversial anti-crypto initiative.
In a letter dated January 16, Senator Lummis called on FDIC Chair Marty Gruenberg to take immediate steps to safeguard all documents associated with OCP 2.0.
Operation Chokepoint 2.0 refers to a controversial initiative aimed at restricting the access of crypto-related businesses to traditional banking services. It is seen as a continuation of the original Operation Chokepoint, which was implemented during the Obama administration to target high-risk industries such as payday lenders and firearms dealers.
Under OCP 2.0, regulatory actions reportedly sought to pressure banks and financial institutions to sever ties with cryptocurrency firms, limiting their ability to operate in the financial system.
The pro-crypto senator warned that any destruction of documents or retaliation against whistleblowers could result in criminal referrals to the Department of Justice (DOJ). She emphasized that obstructing Senate oversight is both illegal and unacceptable.
Furthermore, Lummis instructed the FDIC to immediately cease document destruction and preserve all records related to “digital asset activities,” including the supervision of Signature Bank and the liquidation of Silvergate Bank.
Senator Lummis’ letter further noted whistleblower allegations that staff members are being closely monitored to prevent the release of these materials.
This warning to the FDIC comes as reports suggest that President-elect Donald Trump’s advisory team is contemplating the removal of the agency as part of a broader banking sector reform. The proposed changes would involve consolidating the FDIC, the Office of the Comptroller of the Currency (OCC), and the Federal Reserve’s non-monetary functions to simplify regulatory oversight.
Advisors to President-elect Trump have also proposed transferring the responsibility for deposit insurance to the Treasury Department.
Lummis To Lead SBC Crypto Sub-Committee
Senator Lummis’ letter to Gruenberg comes shortly after reports suggesting she could lead the newly formed crypto subcommittee within the Senate Banking Committee.
Republican Senator Tim Scott has prioritized the establishment of a crypto subcommittee, seeking to build upon the success of the House’s own, which was formed in 2023 under former Congressman Patrick McHenry.
The newly formed crypto subcommittee aims to address cryptocurrency regulation and policy in the United States. It is expected to focus on several key areas, including the development of digital asset frameworks, the integration of blockchain technology, and the protection of consumers in the evolving crypto space.
In addition to her potential leadership role, Senator Lummis is expected to be a key figure in the new crypto subcommittee due to her strong advocacy for digital assets. Her leadership is viewed as crucial in advancing a pro-crypto agenda, with an emphasis on creating balanced regulations that promote innovation.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
