Encryption, Trump, GOP Leadersho gang to fdic revocation | Real Time Headlines

Anchorage Digital CEO Nathan McCauley hopes everyone knows what happened to the Biden administration in 2023 cryptocurrency companies.

“Our story is ridiculous,” McCauley told CNBC in an interview after testifying in the Senate hearingtitled “Investigating the Real Impact of U.S. withdrawal,” earlier this month. “We have a bank that has been in a relationship with us for years and they basically have a dime and decided to close our bank account.”

No explanation. No warning. After two years of working with the bank, the visit was cut off. He did not name the bank, an Anchorage spokesman said the company refused to offer it.

McCauley’s peers in the cryptocurrency industry share a similar legend that was locked in the U.S. financial system and lost access to payrolls, checking accounts, and payment processing. Industry leaders call it “Operational Obstacle Point 2.0” Regulators’ coordinated efforts during Biden’s presidency allegedly require banks to cut ties with cryptocurrencies. Version 1.0 happened when the Obama administration followed banks that supported gun manufacturers and payday lenders.

Crypto executives and investors, in the case of the term “revoked,” found direct allies among top Republicans in Congress and the White House, ready and willing to investigate any potential malfeasance that occurs when the Democrats are in charge.

President Donald Trump An agenda was formulated for political gain. Last month, at the World Economic Forum in Davos, Switzerland, he defendant JPMorgan Chase and Bank of America In terms of political motivation revoked, it is claimed that major financial institutions are shutting conservatives under pressure from regulators. Banks denied the demand and Trump provided no evidence to support it.

Senator Rick Scott (R-Fla.) Has been in close contact with Trump, who has used his as chairman of the Senate Banking Committee Opening speech The president’s sentiment was responded to during the February 5 hearing.

“It’s shocking and frustrating to hear stories about financial institutions serving digital asset companies, politicians, and conservatively consistent corporate and individual cut-offs,” Scott said.

For crypto industry leaders like McCauley, the Republican leadership in Washington provides a platform to publicly publicize their grievances.

McCauley’s company, a federally chartered cryptocurrency bank, recounts the sudden loss of Anchorage’s banking services in June 2023. He said that despite his company’s many challenges, the environment has become worse for more familiar startups.

“You can only imagine what’s happening with smaller entrepreneurs who don’t have the resources to come to the marshal to keep their bank accounts open,” McCauley told CNBC.

In his witness McCauley said Anchorage had to give up 20% of its workforce, including 70 U.S. employees after losing access to banking services. He said that until today, customers are unable to “send wire transmissions to third parties.”

High-profile hearings underline the sudden impact of the cryptocurrency industry in early Trump’s second administration Get a role Its favored candidates will be selected across the country in November.

Encrypted communication Common cases Once was One of the largest corporate donors More than $75 million was provided to a group called Fairshake and its member PAC during the 2024 election cycle Fresh promise of $25 million Support Pro-Crypto Super PAC in mid-2026. The ripple is about $50 million.

Coinbase and Ripple are both involved in the protracted legal battle of former chairman SEC Gary Genses.

His executive orders on cryptocurrency Committed to “equal and open access” to financial services. Trump appoints venture capitalist David Sacks, a long-time ally Elon Muskas the White House’s first AI and crypto tsar.

Meanwhile, the SEC has marked a rollback of the rules, which has previously blocked bank holdings Bitcoin On its balance sheet, the FDIC is under pressure to modify the guidelines, which makes it harder for banks to serve digital asset companies.

Coinbase Chief Legal Officer Paul Grewal testifies with Bitcoin Miner CEO Fred Thiel on the House Financial Services Committee Mara Holdings. In the title “Operating Choke Point 2.0: Biden administration’s efforts to put cryptocurrency into crosshairs“They describe the enormous pressure from U.S. regulators to effectively promote banks’ connections with cryptocurrency companies.

“No one wants to see anyone denying basic banking services based on political views, or whether they happen to work in an industry that may be unhappy with the current government,” Greval told CNBC. “There are concerns over banks throughout the political aisle and across Congress.” Serving weapons from the past in order to be rude to those who may not be welcome.”

FDIC released last week Hundreds of pages of internal records Obtained through the Freedom of Information Act (FOIA) request. The documents show that regulators sent a “pause letter” urging banks to reconsider their relationship with crypto customers.

Nic Carter, founder of Castle Island Ventures, owns It took several months Revelations were recorded in the choke investigation. He said FDIC records show that banks are under pressure to avoid cryptocurrency even if there is no clear law.

“Ultimately, smoking guns are communications between regulators and the bank itself,” Carter said.

As part of the investigation, the House committee is investigating claims of crypto companies that illustrate the secret blacklist of bank executives and financial regulators.

Thiel, in his witness“Discriminatory banking and financial policies threaten the digital asset ecosystem,” said, “banking and payment processors are effectively deciding which industries can exist and grow in the U.S. economy.”

In most stifling incidents that capture the anger of crypto investors, Yingai Bank’s forced closure and Signature Bank In 2023, follow collapse A few months ago, at FTX at Sam Bankman Fried. Silvergate and Signature are leading FDIC insurance banks for cryptocurrency companies.

Bank’s parents Silvergate Capital acknowledged in it Bankruptcy filing Last year, IT business experienced a “rapid contraction” in early 2023, but said it was “stable” and was able to “meet regulatory capital requirements” and “have the ability to continue serving customers.”

Silivergate attributes its bankruptcy to “increased oversight pressure on Silvergate and other banks committed to serving their crypto-asset business.”

Signature Bank Seizure by regulators in March 2023. Former Democratic Congressman Barney Frank claim The FDIC specifically shuts it down to “send very strong anti-transparent information.” The FDIC arranged for Signature’s asset sale, excluding $4 billion in crypto-related deposits.

Mike Lempres, who served as chairman of Silvergate, had previously served as Coinbase legal director for two years Opinion Articles In this week’s Wall Street Journal, “The federal government has been contaminating cryptocurrencies for four years and adopting legal and suspicious policies that force companies to succumb to their will.”

While the entire information of the crypto industry is rallying around that information, many Congresses are focused on making banks target conservative political views. Carter said lawmakers are trying to attract more audiences because “most ordinary people don’t care about encryption.”

“I think it’s a political choice made by people in Congress and the government after the explosion, and it’s also about the work of conservatives,” Carter said. “So, it’s a question of broader appeal.”

For Trump, it’s not just a political view, but more benefits. It may involve a lot of money.

Trump and First Lady Melania Trump have been before he even returned to the office Meme coins launched This immediately added billions of dollars in paper value, in addition to the tens of millions of dollars the project received for transaction fees.

One week term, Trump launches the truththe finance division of Trump Media, promising ETFs, cryptocurrency investments and “Patriot Economy” assets – all of which are escrowed at Charles Schwab’s $250 million.

Meanwhile, Musk is the center of the Trump administration and is working on his own projects. He positioned his social media platform X as an alternative online banking, Enable Users can move funds between traditional bank accounts and their digital wallets for instant peer-to-peer payments.

The entire industry expressed good resonance.

“This is a whole new day for American cryptocurrencies,” said David Marcus, former cryptocurrency chief. Yuan and the current CEO of the infrastructure startup LightSpark interviewed CNBC’s “Squawk Box” last week. What happened under Trump, he said, is “the polarization of atmosphere and energy for our entire industry.”

watch: LightSpark CEO David Marcus in a new era of crypto