Rep. French Hill announced plans to intensify scrutiny of alleged efforts by regulators to cut off crypto businesses from banking services, citing concerns raised by industry leaders and recent public statements by a16z co-founder Marc Andreessen.
Hill, who is in contention to lead the House Financial Services Committee next year, voiced his concerns during a hearing on financial technology on Dec. 3, which featured testimony from several prominent industry leaders.
Hill said:
“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 appeared on the Joe Rogan podcast and discussed federal authorities allegedly pressuring banks to terminate accounts associated with crypto and other industries.
The claim has reignited concerns about “Operation Choke Point 2.0,” a phrase used to describe suspected attempts to restrict banking access for certain sectors. The original Operation Choke Point was a Justice Department initiative launched in 2013 to limit financial services for industries deemed high-risk for fraud, such as payday lenders.
Executives from Stellar Development Foundation and Anchorage Digital testified during the hearing that their companies had been affected. Stellar CEO Denelle Dixon described challenges in maintaining banking relationships.
She said:
“We’ve had to reach out to ten different banks, and no reason was provided for the rejections.”
Congressional dynamics and policy
Hill’s comments come as the House Financial Services Committee’s leadership is set to change. Current Chair Patrick McHenry, R-N.C., is retiring, and Hill and other pro-crypto Republicans are in the running to assume the position.
With newly elected President Donald Trump pledging to end regulatory efforts resembling Operation Choke Point, the upcoming year could mark a shift in how Congress approaches crypto and financial access.
The Federal Deposit Insurance Corporation (FDIC) noted in a 2024 report that banking institutions are not barred from serving specific industries. However, Hill and other lawmakers have raised questions about whether such policies are enforced uniformly.
The hearing also addressed the ongoing debate over stablecoin regulation, with lawmakers questioning how much oversight should be delegated to state regulators. Hill expressed optimism about advancing crypto-related legislation despite time constraints.
He said:
“We’ve made significant progress, and I believe we can reach a consensus.”
Meanwhile, Rep. Maxine Waters, D-Calif., who has worked with McHenry on a bipartisan stablecoin framework, expressed hope that an agreement could be reached before the year ends. However, she acknowledged the challenges posed by a crowded legislative calendar.
Waters said:
“I’ve always appreciated Mr. McHenry’s efforts to find common ground. Hopefully, we can see meaningful progress before the new Congress begins.”