Pennsylvania Senator Sends A Letter To FDIC Director Informing Him Of Allegations Made By A Whistleblower

Pat Toomey (a U.S. senator from Pennsylvania) has sent Martin Gruenberg the acting chairman and director of the Federal Deposit Insurance Corporation) a letter. The senator has asked questions regarding the allegations raised against the operations of the FDIC. The senator considers that the FDIC may have been involved in the activities related to deterring the legitimate relationship between the banks as well as the crypto-related platforms with the use of inappropriate tactics.

Pat Toomey Enquires FDIC Regarding Crypto-Hostile Activities

It was noted by the senator that in Washington several reports are referring to the respective allegations. As per him, the members of FDIC’s headquarters in Washington D.C. are persuading the regional offices of the agency to deliver letters to several banks. The letters persuade the banking organizations that they should avoid expanding their bonding with crypto institutions, while there is no legal basis for them to send these letters.

Apart from that, the senator mentioned that some reports pointed out that the FDIC headquarters’ staff has moved toward a very unconventional way in this respect. He asserted that they have conversed with their regional office urging them to worsen the position of the firms dealing with cryptocurrency. He added that the staff at the regional office of FDIC elaborated on the engagement of the agency’s headquarters in the respective issue.

According to the senator, the staff revealed that this all was done to manipulate the flow of loans toward crypto-related firms. Along with this, another purpose was to discourage the banking institutions from lengthening these loans for crypto firms in the coming times. Concluding from the letter of Toomey, the date when the respective letters were sent was around 6th June.

Senator Demands Answers from the FDIC Till This Month’s end

Gruenberg was asked by Toomey to validate or refute the alleged operations by this month’s end. He also inquired if the legal division of FDIC has given an opinion regarding the above-mentioned operations. Pat Toomey is known as an aggressive crypto proponent. The senator has been frequently criticizing the policy adopted by the Securities and Exchange Commission.

In addition to this, the Stablecoin TRUST Act of 2022 has been authored by him and he has presented the companion legislation regarding the Virtual Currency Tax Fairness Act of 2022 in front of the Senate. Some reservations have also been brought to the front by him dealing with the release of a central bank digital currency within the United States

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