Frustration permeates the cryptocurrency industry as evidence mounts of a systematic effort by the Biden administration’s FDIC to squeeze crypto companies out of the traditional banking system.
Regulators weaponizing the banking system to suffocate crypto innovation while America watches its fintech future evaporate.
Recently released documents reveal a pattern that crypto advocates have long suspected—a coordinated campaign to effectively “de-bank” the entire sector.
The numbers tell the story. Twenty-four banks received cease-and-desist letters about their crypto activities. A staggering 111 interactions between FDIC regulators and banks were documented, all centered on crypto. The message? Crypto isn’t welcome here.
House Oversight Committee Chairman James Comer isn’t buying it. His investigation, launched in February 2025, aims to uncover whether the FDIC’s actions were politically motivated.
The committee isn’t playing around—they’re demanding unredacted documents relating to those infamous “pause letters” that fundamentally told banks to back off from crypto.
Meanwhile, Acting FDIC Chairman Travis Hill seems to be distancing himself from the previous regime’s approach. Funny how things change when the spotlight gets hot.
The 175 documents released ahead of a court-ordered deadline paint an ugly picture: banks facing resistance, months-long silences from regulators, and direct orders to “pause” or “suspend” crypto activities.
Regulatory stonewalling at its finest.
The impact has been devastating. Most banks simply gave up on crypto entirely. Who wants to fight the federal government?
The result? Innovation is packing its bags and heading overseas to Dubai, Singapore, and Hong Kong, where regulators don’t treat blockchain like it’s radioactive.
Congress is finally taking notice. Senate hearings, House committee approvals to repeal crypto rules, and bipartisan legislation are all in the works.
The high-profile closures of Silvergate Bank and Signature Bank, with claims of political motives behind their shutdowns, have only reinforced industry fears of targeted elimination.
Many in the industry argue that driving cryptocurrencies away from traditional banks will simply accelerate the adoption of DEX platforms that operate completely outside regulatory reach.
Critics warn that excessive regulation could seriously weaken U.S. global financial competitiveness as other nations embrace cryptocurrency innovation.
But the damage is done.
The real question is whether America wants to lead in financial technology or hand that crown to other countries.
Right now, it looks like we’re choosing door number two. Great plan.
