The Blockchain Association, a cryptocurrency advocacy group, has filed additional Freedom of Information Law (FOIL) requests to regulators in the US. The group had initially filed for information from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency. The new requests were submitted to the Federal Housing Finance Agency and the New York Department of Financial Services, seeking further information on the de-banking of crypto-friendly banks.
The organization is interested in learning more about the de-banking of cryptocurrency companies after the closure of Signature Bank and the failure of Silvergate Bank. These two banks were known for their friendly stance towards cryptocurrency-related businesses, but both were closed down, leaving many companies in the crypto industry without a banking partner.
The Blockchain Association believes that these closures were a result of regulatory pressure, and that the lack of transparency around the issue is problematic for the industry. By filing these FOIL requests, the group hopes to shed more light on the situation and ensure that the regulatory process is fair and transparent.
The de-banking of crypto companies has been a contentious issue for some time. Many banks are hesitant to work with companies in the industry due to concerns around money laundering and other illegal activities. However, for companies in the crypto space, having a banking partner is essential for conducting day-to-day business operations.
The closure of Signature Bank and Silvergate Bank has highlighted the fragility of the relationship between banks and cryptocurrency companies. The Blockchain Association is seeking to understand what led to the closures and whether there was any unfair regulatory pressure involved.
This is not the first time that the Blockchain Association has filed FOIL requests to obtain information about the regulation of cryptocurrency-related businesses. The group has been a vocal advocate for the industry and has worked to ensure that regulators take a fair and balanced approach to the sector.
As the crypto industry continues to grow, it is likely that we will see more regulation and scrutiny from regulators. The actions of the Blockchain Association demonstrate the importance of transparency and accountability in this process, and highlight the challenges faced by companies operating in this space. By working together with regulators, the industry can ensure that it continues to thrive and innovate, while also addressing legitimate concerns around security and illegal activity.