US Senator Cynthia Lummis (R-WY) has issued a stinging rebuke of the Federal Deposit Insurance Corporation (FDIC), alleging misconduct in the agency's handling of digital asset oversight and the threat of whistleblowers.

On Thursday, Loomis sent a letter to FDIC Chairman Marty Gruenberg after whistleblowers alleged the agency destroyed materials related to its cryptocurrency operations and threatened employees to silence them.

“The FDIC’s alleged actions are unacceptable and unlawful,” Loomis wrote in it. letter. The senator pledged to pursue the truth behind these allegations, demanding that federal agencies involved in the oversight be held accountable.

“The American people deserve transparency, and I will make sure they get the answers they deserve,” Loomis wrote in a letter. statement Thursday.

The Federal Deposit Insurance Corporation (FDIC) did not immediately respond Decryption Request for comment.

The accusations revolve around "Operation Chokepoint 2.0“, an alleged initiative to marginalize cryptocurrency companies by cutting off their access to banking services.

The whistleblower reportedly told Loomis that the FDIC monitored employees' access to sensitive materials to prevent disclosure in the Senate.

“The FDIC is trying to hide the Chokepoint 2.0 operation, and the FDIC must immediately preserve all documents related to digital assets,” Loomis said. books On X (formerly Twitter). “Tim Scott and I will get to the bottom of this.”

Tim Scott was sworn in as chairman of the Senate Banking Committee after his predecessor, anti-crypto politician Sherrod Brown, lost To Bernie Moreno in the United States in 2024. Election.

Loomis instructed the FDIC to preserve all records related to its digital asset activities since January 2022 in her letter.

The senator detailed specific categories of documents that must be preserved, including communications about Signature Bank, Silvergate Bank, and enforcement actions related to cryptocurrencies.

Loomis also required the preservation of all records associated with FDIC guidance and coordination with other federal banking agencies regarding digital assets.

The politician warned of criminal referrals to the Justice Department if it finds that the FDIC "obstructed Senate oversight" and "willfully destroyed materials."

Operation Chokepoint 2.0: Allegedly targeting the cryptocurrency industry

Operation Chokepoint 2.0 mirrors an Obama-era project that targeted industries such as firearms dealers and payday lenders by pressuring banks to cut ties with these companies.

Industry advocates claim that this latest iteration focuses squarely on cryptocurrencies, and uses similar tactics to marginalize an entire sector through backdoor regulatory measures.

Documents from last month Acquired Through a Freedom of Information Act (FOIA) request filed by Coinbase, the Federal Deposit Insurance Corporation (FDIC) revealed that it has directed banks to “pause all activity related to crypto assets” in 2022.

Cryptocurrency leaders like Coinbase CEO Brian Armstrong and Custodia Bank CEO Caitlin Leung subscriber Personal accounts for “debanking”, where financial services are suddenly withdrawn for no reason.

Earlier this month, pro-crypto lawyer John Deaton Named Operation Chokepoint 2.0 is a clear example of regulatory overreach driven by political motives rather than sound policy.

“This is not just a fight for cryptocurrencies,” Deaton warned at the time. “It is a fight against the erosion of institutional integrity and the absolute power of unelected bureaucrats.”

Modified by Sebastian Sinclair