Senator Toomey Questions FDIC on Policy toward Crypto Companies

Senate Banking Committee Ranking Member Pat J. Toomey (R-PA) criticized the FDIC for "improperly taking action to deter banks from doing business with lawful cryptocurrency-related companies."

In a letter to FDIC Acting Chair Martin J. Gruenberg, Senator Toomey highlighted whistleblower complaints alleging that the FDIC sent letters to urge several banks to refrain from extending credit to crypto-related companies. Senator Toomey said that the whistleblowers further alleged that the FDIC provided its regional offices with draft templates of the letters and that the FDIC had gone so far as to use its authority to prevent banks from extending lines of credit to crypto-related companies.

Senator Toomey asserted that the crypto-related companies in question have not engaged in any unlawful activities, and that they had the necessary precautions in place to allow banks to permit customers to trade crypto-assets using the companies' exchange platforms. He added that the agreements in place between banks and crypto-related companies are no different than the common practice of banks partnering with third parties so customers can access services like stock trading platforms. To better understand the FDIC’s actions, Senator Toomey posed a set of questions to the FDIC and asked for a response no later than August 30, 2022.