Congressman French Hill promises to investigate banking exclusion of cryptocurrency businesses

Rep. French Hill has announced plans to increase scrutiny of regulators’ alleged attempts to disconnect crypto businesses from banking services. This decision came after concerns raised by industry leaders and recent statements by a16z co-founder Marc Andreessen.

Hill, who is a contender for leading the House Financial Services Committee next year, expressed his worries during a hearing on financial technology on Dec. 3, where various prominent industry leaders provided testimony.

Hill stated:

“Legal businesses in this country must have access to banking and financial services. This committee will thoroughly investigate these issues into the next Congress.”

Operation Chokepoint 2.0

Andreessen recently discussed federal authorities allegedly pressuring banks to shut down accounts related to crypto and other industries during an appearance on the Joe Rogan podcast.

This claim has renewed concerns about “Operation Choke Point 2.0,” which refers to suspected efforts to limit banking access for specific sectors. Stellar Development Foundation and Anchorage Digital executives testified during the hearing that their companies were impacted. Stellar CEO Denelle Dixon mentioned challenges in maintaining banking relationships.

She said:

“We’ve had to contact ten different banks, and no reasons were provided for the rejections.”

Congressional Dynamics and Policy

Hill’s remarks coincide with the impending change in leadership of the House Financial Services Committee. Current Chair Patrick McHenry, R-N.C., is stepping down, and Hill, along with other pro-crypto Republicans, are being considered for the position.

With President Donald Trump promising to end regulatory actions resembling Operation Choke Point, the upcoming year could witness a shift in Congress’s approach to crypto and financial access. The Federal Deposit Insurance Corporation (FDIC) mentioned in a 2024 report that banks are not prohibited from serving specific industries. Nonetheless, Hill and other lawmakers have raised concerns about the consistent enforcement of such policies.

The hearing also delved into the ongoing discussion about stablecoin regulation, with lawmakers deliberating on the extent of oversight to be allocated to state regulators. Hill expressed optimism about advancing crypto-related legislation despite time constraints.

He added:

“We’ve made significant progress, and I believe we can reach a consensus.”

Meanwhile, Rep. Maxine Waters, D-Calif., who collaborated with McHenry on a bipartisan stablecoin framework, remains hopeful about reaching an agreement before the year’s end. However, she acknowledged the challenges posed by a busy legislative schedule.

Waters stated:

“I’ve always valued Mr. McHenry’s efforts to find common ground. Hopefully, we can make meaningful progress before the new Congress convenes.”