Chairman Meuser Leads First Hearing on Biden Administration’s Choke Point 2.0

Washington, D.C. - Yesterday, Congressman Dan Meuser (PA-09), Chairman of the House Financial Services Committee's Oversight and Investigations Subcommittee, held his first hearing titled "Operation Choke Point 2.0: The Biden Administration's Efforts to Put Crypto in the Crosshairs."

The hearing examined how federal regulators during the Biden Administration used their supervisory authority to debank digital asset firms and individuals engaged in the crypto industry.

"Biden regulators used their power to undermine the digital asset ecosystem, resorting to vague and interpretive regulatory letters to threaten banks, creating an environment of regulatory uncertainty," said Chairman Meuser. "These actions are reminiscent of the original Operation Choke Point under the Obama Administration, where bureaucrats attempted to debank lawful businesses it disfavored. This time, the target is crypto."

The hearing featured testimony from key industry experts:

• Mr. Austin Campbell, Adjunct Professor, New York University Stern School of Business
• Mr. Paul Grewal, Chief Legal Officer, Coinbase
• Mr. Fred Thiel, Chief Executive Officer, MARA

During the hearing, witnesses detailed how the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Federal Reserve pressured financial institutions to deny banking services to digital asset firms, their employees, and even their customers-all without a formal rulemaking process. Testimony revealed how regulators' so-called "pause letters" functioned as unofficial cease-and-desist orders, forcing banks to cut ties with crypto-related businesses or risk punitive regulatory action.

"The free market thrives when innovation is allowed to flourish," Meuser added. "Regulators have a duty to protect the financial system, but not at the expense of legitimate businesses like crypto firms. This is not about risk management; it's about bureaucrats picking winners and losers in our economy."

The hearing also addressed the FDIC's recent admission that it had acted improperly in its approach to crypto firms. Chairman Meuser vowed that the Oversight and Investigations Subcommittee would continue its work to hold regulators accountable and advance legislative solutions to prevent future abuses.

"This is about ensuring a fair financial system-one where lawful businesses are not shut out simply because unelected bureaucrats disapprove of their industry," Meuser concluded.

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