Wyoming Senator Cynthia Lummis has raised serious concerns about the Federal Deposit Insurance Corporation's (FDIC) handling of cryptocurrency oversight.
She has accused the agency of misconduct, citing reports from whistleblowers who allege that critical documents were destroyed and employees were pressured to stay silent.
In a letter sent on January 16 to FDIC Chair Marty Gruenberg, Lummis demanded clarity on these claims. She insisted that the FDIC preserve all records tied to its digital asset activities since January 2022, including communications about enforcement actions involving Signature Bank and Silvergate Bank.
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The letter also addressed concerns about coordination between the FDIC and other federal agencies regarding cryptocurrency regulations.
According to the whistleblowers, the FDIC allegedly monitored staff access to sensitive information to prevent disclosures to Congress.
Lummis highlighted a reported initiative known as "Operation Chokepoint 2.0", which allegedly aims to cut off banking access for cryptocurrency firms. She called the FDIC’s alleged actions “unacceptable and illegal”, emphasizing that such behavior damaged public trust.
In her letter, Lummis warned that obstructing Congressional oversight or destroying evidence could lead to criminal referrals to the Department of Justice.
“The American people deserve transparency”, Lummis stated, vowing to expose the truth behind the accusations.
She reiterated this call for accountability on X, where she pledged to work with Senator Tim Scott, the newly appointed chair of the Senate Banking Committee, to investigate the matter fully.
On January 12, Senator Elizabeth Warren sent a letter to Scott Bessent, raising concerns about the growing use of cryptocurrencies in illegal activities. What did the letter say? Read the full story.
