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Crypto Faces Banking Woes, This Non-Profit Presses Government for Answers

Press Releases Crypto News Bitcoinist Crypto Faces Banking Woes, This Non-Profit Presses Government for Answers

The U.S.-based non-profit Blockchain Association (BA) requested information from regulators in the country about an alleged de-banking of crypto companies. Over the past months, the sector has seen some of its most prominent actors lose access to accounts, the ability to process transfers in fiat currency, and more.

The collapse of three major pro-crypto financial institutions, the Silicon Valley Bank, Silvergate, and Signature, are poised to throw fuel into the fire. The nascent industry lost its most significant financial partners, and while many scramble to find a new home for their capital and make payroll, the U.S. goes on the offensive.

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U.S. Government De-Banking Crypto Companies On Purpose?

Per an official statement, the BA requested information from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency. The non-profit claims that these agencies may have “improperly contributed to the failures” of the pro-crypto banks.

As mentioned, the nascent industry has had to open new accounts without these institutions, but with many difficulties, according to the Blockchain Association. The non-profit claims:

The crypto industry is building the next generation of the internet and financial services. This is important work that has created tens of thousands of American jobs. Businesses need bank accounts to pay employees, vendors, and taxes. These are lawful businesses in the United States and should be treated like any other law-abiding business.

Chief Policy Officer at the Blockchain Association Jake Chervinsky claims that the non-profit has received “troubling reports” about companies losing their account without “notice and no explanation.” In that sense, Chervi

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Author: Reynaldo Marquez

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