The reason why Senator Pat Toomey sent a letter to the FDIC! On August 16th, a letter from Pat Toomey to Martin Gruenberg, Director and Acting Chairman of FDIC went public.
Reason for The Letter
On August 16th, Pennsylvania Senator Pat Toomey sent a letter to Martin Gruenberg regarding the allegations that the FDIC tried to deter banks and crypto companies from doing business together. According to Senator Toomey, he received information from a whistleblower that the FDIC has done such activities.
Pat Toomey stated, “According to whistleblower communications that we have corroborated, personnel in the FDIC’s Washington, DC headquarters are urging FDIC regional offices to send letters to multiple banks requesting that they refrain from expanding relationships with crypto-related companies, without providing any legal basis for sending such letters.”
In addition, according to the whistleblower, the FDIC may be using its power to discourage banks from extending credit to crypto companies.
Pat Toomey said, “The FDIC headquarters employees have contacted FDIC regional office bank examination staff to question their review of a loan made by a bank to a crypto-related company and to urge them to downgrade their classification of the loan.”
Pat Toomey Wants Answers
In the letter, Senator Pat Toomey said he expects some answers from Martin Gruenberg to six questions he provided by August 30th. Six questions are related to whether Gruenberg has noticed activities from his employees that would refrain banks from working with crypto companies. The Senator also wanted some evidence in the answers.
Pat Toomey has been active in the crypto industry. Last month, he teamed up with Senator Kyrsten Sinema to release a bill to boost the use of crypto in everyday lives.
While #crypto has the potential to become part of our everyday lives, the current tax code stands in the way. @SenatorSinema and I are teaming up to make it easier to use digital currencies as a common method of payment by exempting from taxes small personal transactions. pic.twitter.com/B6K3jT7GBC
— Senator Pat Toomey (@SenToomey) July 26, 2022