U.S. Senator Cynthia Lummis files charges against FDIC
January 17, 2025
The Federal Deposit Insurance Corporation (FDIC) has found itself at the center of a scandal after Wyoming Senator Cynthia Lummis claimed the agency may have destroyed important documents related to cryptocurrency oversight. According to the senator, these actions violate laws and hinder Senate investigations.
What is Choke Point 2.0?
In her letter, Lummis references the Choke Point 2.0 operation, based on a 2013 U.S. Department of Justice initiative that restricted banking services for "high-risk" industries. Crypto industry representatives claim similar methods are now being used against digital assets. Lummis states that FDIC may have destroyed documents related to cryptocurrency oversight, controlled employee access to these materials, and threatened legal action to prevent the disclosure of information.
Lummis is demanding the preservation of all documents related to FDIC's activities in the digital asset space since 2022, including oversight of Signature Bank and Silvergate Bank, as well as actions against cryptocurrency companies.
Consequences and potential actions
Lummis warned that if FDIC Chairman Martin Gruenberg or his staff destroyed documents, she would forward the materials to the Department of Justice to initiate a criminal case. In 2022, Senator Pat Toomey had already accused FDIC of pressuring banks working with cryptocurrency companies. The story continued in late 2024 when Coinbase revealed letters from the agency urging the suspension of operations with digital assets.