US Congressman Accuses Biden Administration of “Weaponizing Market Chaos to Kill Crypto”

In a statement made on Twitter, US Congressman Tom Emmer has accused the Biden Administration of “weaponizing market chaos to kill crypto.” Subsequently, Emmer note that he sent an investigation letter to the FDIC chairman for the purpose of “seeking additional information,” from the regulator.

The Minnesota representative is noting the banking closures that took place last week and their connection to the crypto industry. Specifically, Signature Bank board member Barney Frank previously asserted their opinion that regulators sent a “strong anti-crypto message,” with the sudden closings.

Congressman Calls FDIC Action into Question

The fall of Silicon Valley Bank, and Signature Bank represented some of the largest banking failures since the financial crisis of 2008. Yet, as the financial sector is inundated with newfound panic, the crypto industry has seen three prominent crypto-friendly banks shut down at the hands of regulators.

Now, US Congressman Tom Emmer has accused the Biden Administration of “weaponizing market chaos to kill crypto.” Moreover, Emer noted that he sent “an investigative letter to FDIC Chairman Gruenberg seeking additional information yesterday.”

Source: Coindesk

Yesterday, Emmer posted the letter he sent to FDIC Chairman Gruenberg, in which he addresses the regulators “weaponizing recent instability in the banking sector to purge legal crypto activity in the U.S.”

Within the letter, Emmer wrote, “These actions to weaponize recent instability in the banking sector, catalyzed by catastrophic government spending and unprecedented interest rate hikes, are deeply inappropriate and could lead to broader financial instability.”

As the developments continue to unfold, it does appear as though the crypto sector is under attack. Through the collapse of Silicon Valley Bank, Signature Bank, and Silvergate Bank, the industry has seen its banking options lessen. Conversely, how the situation continues to play out will be immensely interesting for the near future of the industry.