Comer Seeks Information from OCC on Politically Motivated Debanking Attempts by Large Financial Institutions
WASHINGTON—House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) is continuing to investigate the improper debanking of individuals and entities following reports of financial institutions debanking lawful American businesses and citizens based on political affiliation or involvement in industries viewed unfavorably by the Biden Administration. In a letter to Acting Comptroller Rodney E. Hood of the U.S. Office of the Comptroller of the Currency (OCC), Chairman Comer emphasizes that the Committee is focused on whether debanking actions are independently initiated by financial institutions or directed by government regulators. Chairman Comer is now requesting documents and information to gain a clearer understanding of the OCC’s enforcement strategy, its consistency, and its impact on large financial institutions.
“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. Specifically, the Committee is focused on whether the actions are self-initiated by financial institutions or done at the direction of government regulators. On January 24, 2025, the Committee wrote to leaders in the blockchain and crypto spaces seeking information about their experiences of debanking. On February 27, 2025, the Committee wrote to Acting Federal Deposit Insurance Corporation (FDIC) Chairman Travis Hill, requesting documents and communications concerning digital asset corporations and associations who have spoken publicly about debanking. The FDIC’s response was highly informative and showed the ways in which regulators, primarily under the previous administration, stifled American innovation and competitiveness,” wrote Chairman Comer.
As part of the Oversight Committee’s investigation, staff examined the FDIC’s extensive response and communications in unredacted form regarding crypto-related business proposals. The information provided to the Committee by the FDIC focused primarily on small institutions and omitted many of the nation’s largest banks, which whistleblowers have flagged during the Committee’s investigation. The Committee now seeks the OCC’s assistance in gaining a clearer understanding of the enforcement approach toward larger financial institutions under OCC supervision.
“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. Accordingly, the Committee seeks the OCC’s communications with financial institutions surrounding their issuance of Interpretive Letter 1179. Prior to the OCC’s March 7, 2025, recission of Interpretive Letters governing bank authority to engage in crypto-activity, the OCC had required its member banks to receive supervisory nonobjection and to demonstrate to the OCC adequate controls before engaging in crypto-activity. The Committee seeks to better understand the strategy, consistency, and impact of the OCC’s enforcement,” concluded Chairman Comer.
Read the letter to OCC here.
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