Worries over the debanking of crypto companies and executives have reached the highest rungs of the Securities and Exchange Commission.
In Wednesday comments, SEC Commissioner Hester Peirce expressed skepticism over a budget from the Public Company Accounting Oversight Board, a nonprofit that oversees the audits of publicly listed companies in the US.
Peirce pointed to the Board’s decision to focus on companies that have significant crypto holdings or facilitate crypto transactions.
“In recent weeks, regulatory efforts to dissuade regulated entities from serving the crypto industry and its participants or otherwise engaging in crypto have come to light,” she said.
In her decision to not approve the nonprofit’s request for nearly $400 million for 2025, Peirce asked how the board considers which companies to investigate “without dissuading auditors, issuers, and broker-dealers from engaging with crypto.”
Peirce was outvoted by three other commissioners, including SEC Chair Gary Gensler.
The crypto faithful have dubbed Peirce “crypto mom” for her comparative acceptance of the industry.
She stands in contrast to Gensler, whom many crypto executives have criticised for what they perceive is an unwarranted crackdown on the industry.
Is crypto debanked?
Peirce’s comments follow weeks of allegations from the industry over what it claims are concerted attempts to lock it out from traditional banks.
Crypto venture capitalist Nic Carter has called this alleged conspiracy “Operation Choke Point 2.0.”
He’s riffing off of “Operation Choke Point,” a Barack Obama-era policy to root out fraud and money laundering among firearms dealers, payday lenders, and at-risk industries.
The allegations recently gained traction after Marc Andreessen, the Silicon Valley VC, chimed in on the issue.
Other crypto luminaries and industry executives then started sharing their own experiences.
And even politicians weighed in.
“Legal businesses in the United States, in this great country, should have the freedom to bank and have financial services,” Representative French Hill said during a December congressional hearing.
Crypto market movers
Bitcoin is down 2.6% over the past 24 hours to $102,242.
Ethereum is down 4.8% over the past 24 hours to $3,699.
What we’re reading
What comes next for Sam Altman’s eyeball-scanning Worldcoin following a stormy year — DL News
This AI agent trades crypto for you — Milk Road
Milk Road PRO AMA #9 — Milk Road
Andre Cronje’s Sonic Labs Announces L1 Launch, Incentivizing Users With Token Airdrop — Unchained
Delphi Digital says justice served after ex-VP who stole $4.5m gets four years in jail — DL News
Ben Weiss is DL News’ Dubai Correspondent. Got a tip? Email him at bweiss@dlnews.com.
