- Lummis accuses FDIC of destroying crypto-related documents and silencing staff.
- The senator demands transparency and warns of criminal referrals for obstruction.
Senator Cynthia Lummis (R-WY) has accused the Federal Deposit Insurance Corporation (FDIC) of misconduct in handling cryptocurrency oversight. In a letter to FDIC Chair Marty Gruenberg, Lummis alleged whistleblowers reported document destruction and employee intimidation linked to the agency’s crypto activities.
Whistleblowers claimed the FDIC destroyed critical records and restricted staff access to sensitive data. Lummis emphasized the need for transparency, calling these actions “unacceptable and illegal.” She demanded preserving all materials tied to digital assets since January 2022, including communications about Signature Bank, Silvergate Bank, and enforcement actions.
Lummis also warned of criminal referrals if the FDIC obstructed Senate oversight. She called for an end to retaliation against whistleblowers and urged the immediate preservation of all evidence. The senator stated her commitment to ensuring public trust in federal agencies.
Crypto Industry Faces Regulatory Overreach
The allegations center on “Operation Chokepoint 2.0,” a purported effort to marginalize crypto firms by limiting their banking access. This initiative mirrors a controversial Obama-era program targeting firearms dealers and payday lenders. Industry advocates argue this version focuses solely on the crypto sector.
Lummis has joined forces with Senator Tim Scott, chair of the Senate Banking Committee, to investigate these claims. She criticized the FDIC’s alleged bad faith practices, citing its refusal to cooperate fully in court-ordered disclosures. Coinbase sued the FDIC for redacted documents, including a directive to pause crypto-related activities.
Pro-crypto voices like attorney John Deaton have labeled these actions regulatory overreach. Deaton warned against unchecked bureaucratic power and the erosion of institutional integrity. The crypto industry continues to push for accountability and fair treatment from regulators.
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