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Congress is busy (by that standard at least) with the crypto front.
First, David Sacks (the country’s first AI and Crypto “Czar”) held its first press conference, during which it declared its commitment to maintaining digital assets innovation in the US.
House and Senate Committee leadership also took advantage of the opportunity to announce a new Bi-Camera cryptographic working group. If this sounds like a committee on a committee, then that’s precisely because that’s exactly what it is.
Meanwhile, Senator Bill Hagerty has introduced a new Stablecoin bill. The language is rather similar to the text that saw the last Congress, focusing on preliminary requirements and audits. It also allows non-banks to issue stablecoins and has at least some bipartisan support thanks to longtime Senator Kirsten Gillibrand of Crypto Advocate Democrat.
Then today we had our first crypto-related hearing of the session. This morning the Senate Banking Committee met to discuss what is called “Operation Chalk Point 2.0” when he leaves the group.
The hearing is consistent with reports that the FDIC is planning to adjust cryptographic guidelines and allow banks to participate in several cryptographic activities.
It started mellow enough. Chairman Tim Scott spoke about life-changing loans he received from community banks in the 90s. Ranking member Elizabeth Warren said her office has identified more than 11,000 individuals who accused her of limited access to banking services.
The parties seem to agree with emphasising that stripping is happening, which is a problem. But what’s causing it and how to stop it is the key to competition. It didn’t take long for the party line to appear.
It was unfair to have been stripped of the bank’s privileges for having several bounced checks, saying that most of her statements were concentrated on individual clients and businesses.
Not too fast, Sen. Tom Tillis rebutted. Banks should not be forced to provide services to all their customers.
“It’s called risk management,” he said.
Whether banks denied service to certain companies or customers did that in the direction of risk management and federal regulators was also a point of competition.
“The CFPB is one institution that is actively working to stop unfair removal of cutting,” Warren said. “Currently, there are five different rules for agents, which help prevent them from getting out by addressing some of the underlying causes, from the obvious fee practices to religious discrimination.”
The comment comes shortly after the CFPB’s new acting committee chair, Treasury Secretary Scott Bescent, ordered virtually all pending operations to be suspended.
Several Republicans argued against it. The problem of escaping is only exacerbated by federal agencies.
“Under the Biden administration, federal regulators exploit power and pressured banks to cut off services to individuals and businesses of conservative nature, or to those who worked with the industries they did. We’ve seen the rise of many people putting pressure on banks calling Chokepoint 2.0, Scott said.
Other Democrats were heard as an opportunity to express their concerns about the clumsy over the new task force led by Elon Musk and access to the Treasury payment system.
“The Doge crowd, one person (who) may have clearance, and there are others, we don’t have any weird thoughts,” Senator Mark Warner said. Ta. He refused to use his allotted time to ask questions to the witness.
Like I said, politics is getting in the way. The victory the crypto industry has been running for has been rapping ever since election night hit several hurdles.
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