House Committee on Oversight and Government Reform Chairman James Comer is pursuing an investigation into the alleged improper debanking of individuals and entities. This inquiry follows reports that financial institutions have been debanking lawful American businesses and citizens based on political affiliation or involvement in industries perceived unfavorably by the Biden Administration.
Chairman Comer has sent a letter to Acting Comptroller Rodney E. Hood of the U.S. Office of the Comptroller of the Currency (OCC) seeking documents and information to clarify whether these debanking actions are independently initiated by financial institutions or directed by government regulators. "The Committee on Oversight and Government Reform is investigating the improper debanking of individuals and entities based on political viewpoints or involvement in certain industries such as cryptocurrency and blockchain," stated Chairman Comer.
The investigation also extends to understanding the OCC's enforcement strategy, its consistency, and its impact on large financial institutions. On January 24, 2025, the Committee reached out to leaders in the blockchain and crypto sectors for their insights into experiences with debanking. Additionally, on February 27, 2025, a request was made to Acting Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill for documents related to digital asset corporations facing debanking issues.
Chairman Comer noted that the FDIC's response provided significant insights into how regulators under previous administrations may have stifled American innovation and competitiveness. The information received focused mainly on small institutions, omitting many large banks flagged by whistleblowers during the investigation.
"As the OCC is the primary regulator of banks chartered under the National Bank Act—specifically the nation’s largest banks with assets between $50 billion and $3 trillion—the Committee seeks information about the OCC’s enforcement of financial institution’s interest and expansion into crypto and crypto-related businesses," added Chairman Comer.
The Committee aims to understand better how Interpretive Letter 1179 was communicated with financial institutions before its rescission on March 7, 2025. Prior requirements from OCC included member banks receiving supervisory nonobjection before engaging in crypto activities.
For further details, readers can access Chairman Comer's letter to OCC online.
