- The Blockchain Association submitted Freedom of Information Act (FOIA) to access documents involving account closures to some crypto firms.
- The Association's CEO, Kristin Smith, demanded equal treatment for crypto and digital asset-related business in the United States.
- This month, the regulators shut down three banks in the US, namely Silvergate, Silicon Valley Bank and Signature Bank.
The crypto industry took an impact following the failure of three banks in the United States. The Blockchain Association is thus taking charge of investigating how the denial of banking services for crypto businesses might have contributed to the banking crisis.
Banks say NO to crypto
The Blockchain Association, a major crypto lobby group based out of the United States, took action against the treatment of the crypto business by the banks. The group submitted Freedom of Information Act (FOIA) requests to the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve and the Office of the Comptroller of the Currency on Wednesday.
The request aims to gain access to documents and communications regarding the "de-banking" of crypto companies in the country. The association described the de-banking as account closures and refusal to open new accounts.
According to the group, this treatment of crypto firms could have contributed to the failure of three US banks in the last week.
The Chief Executive Officer (CEO) of Blockchain Association, Kristin Smith, was noted saying,
The crypto industry is building the next generation of the internet and financial services. This is important work that has created tens of thousands of American jobs. Businesses need bank accounts to pay employees, vendors, and taxes.
The head of the Blockchain Association demanded that cryptocurrency-focused businesses in the United States be treated equally to any other lawful business.
Such an investigation could bring forward the possible negative implications of turning the crypto industry away. Despite being in its infancy, the industry is still worth over $1 trillion and could contribute to the banks' growth.
Banks go down
Over the last few days, three major banks in the country were shuttered by US authorities. Starting with Silvergate Bank, the crisis took down Silicon Valley Bank and added Signature Bank to the list most recently.
However, the New York Department of Financial Services (NYDFS) – the regulatory body responsible for Signature Bank's closing – differed from Blockchain Association's allegations. The NYDFS stated earlier this week that the reason behind the shutdown of the bank had nothing to do with crypto, but it was the failure to provide reliable data that led to the action.
However, more details might emerge over time and upon the conclusion of the Blockchain Association's investigation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.