Allegations of Regulatory Influence on Cryptocurrency Businesses
In recent weeks, allegations have emerged suggesting that federal banking regulators may have unduly influenced major banks to sever relationships with legitimate cryptocurrency businesses, raising concerns about potential political motivations behind these actions. As a result, lawmakers are ramping up their examination of federal banking oversight to understand the dynamics at play.
Congressional Investigation
On June 25, Congressman James Comer, who chairs the House Oversight and Government Reform Committee, announced that the committee would be requiring documentation from the Office of the Comptroller of the Currency (OCC). This move aims to uncover whether significant banks have been pressurized to debank American companies that operate legally within the cryptocurrency space.
In his correspondence with Acting Comptroller Rodney Hood, Comer specifically requested internal correspondence and details on enforcement actions, particularly in relation to the OCC’s issuance of Interpretive Letter 1179. This letter previously established parameters for federally chartered banks to collaborate with businesses dealing in digital assets, but it was rescinded in March 2025.
Focus of the Investigation
The focus of the committee’s investigation is on instances where individuals and entities may have faced debanking due to their political beliefs or their affiliations with industries such as cryptocurrency and blockchain technology. Earlier inquiries conducted by the committee included a request made on January 24 directed at blockchain firms, as well as a February 27 appeal to the Federal Deposit Insurance Corporation (FDIC) to gather feedback on their experiences with banking withdrawals.
Comer emphasized the necessity of scrutinizing how the OCC, which serves as the principal regulator for national banks—including some of the largest financial institutions in the country—impacts the willingness of these banks to engage with cryptocurrencies.
New Guidance from the OCC
In response to the evolving situation, the OCC introduced new guidance for national banks and federal savings associations concerning their crypto-asset dealings. This new protocol, known as Interpretive Letter 1183, officially revoked the earlier guidance that required banks to seek supervisory non-objection for various cryptocurrency operations, such as crypto-asset custody, stablecoin management, and the use of blockchain technology. Nevertheless, while the explicit approval of the OCC is no longer mandatory, banks must still operate in a secure and compliant manner when dealing with crypto-related activities.
