Republican Senator Pat Toomey alleged that the Federal Deposit Insurance Corporation (FDIC) is asking banks to refrain from providing services and extending credit to crypto companies.
The Pennsylvania senator wrote a letter seeking explanation to Martin Gruenberg, director and acting chairman of FDIC.
The senator found out via a whistleblower that “personnel in the FDIC’s Washington, D.C. headquarters are urging FDIC regional offices to send letters to multiple banks requesting that they refrain from expanding relationships with crypto-related companies, without providing any legal basis for sending such letters.”
The letter asks Gruenberg to account for these accusations and provide documentation of FDIC’s work with crypto as well.
According to the whistleblower reports, the FDIC may also be ‘abusing its supervisory powers to deter banks from extending credit to crypto-related companies.’
The FDIC is one of the two federal agencies insuring savings in American depository institutions. Back in April, the FDIC revealed that federal insurance is excluded for crypto company failures.
