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US senator Pat Toomey targets FDIC for discouraging banks on working with crypto firms

On August 16, US Senator Pat Toomey, R. PA, in a letter to the Federal Deposit Insurance Corporation, asked the agency to represent its work in cryptocurrency.

On August 17, in a letter to FDIC acting Chairman, Martin Gruenberg, Tommey said the organisation “might be inappropriately taking action to discourage banks from working with legitimate cryptocurrency-related firms.”

Referring to the informant’s communication to Toomey’s office, the letter states that FDIC has asked its member banks to “refrain from expanding relationships with the crypto-related firms” and end, pause or limit credit to crypto customers.

Toomey asks Gruenbery to represent the documentation of FDIC’s work on crypto for these actions no later than August 30, 2022.

Recently, the Federal Reserve finalised the rules that would apparently make it easier for FDIC-insured banks with novel charters, incorporating fintech organisations to access master accounts with the Fed.

Toomey is the main Republican on the Senate Banking Committee. Since declaring that he won’t look for another term, he has risen as a crypto advocate. This isn’t his first action cross-examining an organization for its work on digital currency.

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