The Subcommittee on Oversight and Investigations of the Committee on Financial Services will hold a hearing on Feb. 6 titled “Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs.” 

According to a memorandum shared by the Subcommittee, the hearing will examine the impact of regulatory actions on the crypto industry.

The hearing’s objectives are to assess the extent to which crypto firms and employees have been affected by regulatory scrutiny, examine the role of financial regulators in limiting banking access to the digital asset ecosystem, and identify policy measures necessary to address concerns raised by industry participants.

The hearing is expected to provide insight into how regulatory policies are shaping the financial landscape for digital assets and whether legislative action is needed to address concerns regarding banking access and regulatory overreach.

Paul Grewal, the chief legal officer of Coinbase, and Fred Thiel, the CEO of Marathon Digital, are among the four witnesses slated to testify at the hearing.

Grewal said in a social media post:

“On behalf of Coinbase, I’m proud to help shed light on the unfair treatment of our industry and thank the Financial Services GOP and the US House Committee on Financial Services for their attention to this important issue.”

Operation Chokepoint 2.0

The hearing will focus on the alleged harmful effects of Operation Chokepoint 2.0, a term used to describe actions by regulators under former President Joe Biden’s administration that have reportedly targeted crypto firms’ access to banking services.

Critics claim Operation Chokepoint began during former President Obama’s term when the Department of Justice and regulatory agencies pressured banks to discontinue services to specific industries. 

The Subcommittee argues that the Biden Administration has extended similar practices to the crypto sector, potentially restricting access to financial services for companies and individuals involved in digital assets.

On Jan. 24, the House Committee on Oversight and Government Reform issued a formal letter to multiple crypto firms and organizations requesting evidence of cases in which crypto companies were denied banking services.

Among the crypto entities were Coinbase, Uniswap Labs, and Blockchain Association.

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