SKN | Biden admin made ‘coordinated attack’ on crypto: House Republicans

House Republicans allege the Biden administration engaged in a coordinated effort to restrict the digital asset industry by pressuring banks and financial institutions to avoid serving crypto-related businesses. The claims come as regulators continue re-evaluating the role of digital banking, credit access, and consumer protection in a rapidly expanding crypto economy. For investors and the public, the debate raises questions about regulatory fairness, innovation, and the future of digital finance in the U.S.

How the Alleged “Coordinated Attack” Took Shape

According to a 53-page report from the House Financial Services Committee, federal regulators under the Biden administration used informal guidance, supervisory pressure, and heightened scrutiny to discourage banks from providing checking accounts, payment services, and credit to crypto companies. Lawmakers argue the actions resembled past efforts such as “Operation Choke Point,” where regulators pressured banks to avoid legally operating industries.

The committee cited more than 30 instances of debanking, including the removal of banking services from high-profile crypto executives such as the CEOs of Uniswap, Ripple, and Gemini. In one case, Anchorage Digital — the first OCC-chartered crypto bank — saw its corporate deposit accounts closed despite years of stable history. Without access to essential banking functions, the company laid off 20% of its workforce.

Republican lawmakers argue this approach created a chilling effect across the financial sector, discouraging banks from engaging with digital asset firms even when those firms complied with existing laws.

Impact on Financial Institutions and Crypto Businesses

The alleged pressure campaign had broad implications for both traditional banks and fintech companies. Many institutions became wary of offering deposit accounts, processing payments, or extending credit to digital asset firms. This limited access to essential financial infrastructure, complicating payroll operations, loan servicing, and investment activities.

From a banking perspective, unclear regulatory standards created uncertainty about how digital banking and crypto-related risk should be evaluated. Financial institutions sought clarity on whether serving crypto businesses would expose them to supervisory penalties or reputational risk.

For the crypto industry, the lack of banking access hindered operational growth, customer onboarding, and liquidity flows — all critical for digital banking adoption and the expansion of blockchain-based financial services.

Regulatory Response and Shifting Policy Landscape

Since early 2025, federal regulators have begun reversing several Biden-era guidance documents and re-examining how crypto oversight should function. Comptroller of the Currency Jonathan Gould praised Congress for “shining a light on the politicization of banking,” emphasizing the need for a consistent regulatory structure that supports innovation while protecting consumers.

House Republicans are now urging the Securities and Exchange Commission to modernize securities laws for digital assets and calling on Congress to pass clear crypto market structure legislation. They also highlighted the importance of stablecoin rules that work alongside traditional systems for credit, payments, and deposit protection.

Industry leaders argue that clearer regulatory frameworks — not informal pressure — are essential for building trust, enabling digital banking advancements, and integrating crypto safely into mainstream financial services.

Broader Economic Outlook

With crypto adoption rising and digital payments expanding, the U.S. faces growing competition from global markets that are developing more structured digital asset regulations. A balanced approach could support innovation, strengthen consumer protections, and ensure that American financial institutions remain competitive in areas like digital banking, mobile payments, and tokenized credit products.

Closing Insights

The debate over crypto regulation underscores a larger tension between innovation and oversight. For banks, clarity is essential to expand product offerings, manage risk, and support the next generation of financial services. For policymakers, the challenge is crafting rules that protect consumers without suppressing emerging technologies. How the U.S. navigates this moment will shape credit access, digital banking progress, and financial competitiveness for years to come.

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