Senator Lummis Issues Dire Warning: FDIC’s Document Destruction Could Lead to Criminal Charges!

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Senator Cynthia Lummis recently expressed concerns towards the Federal Deposit Insurance Corporation (FDIC) due to accusations about document destruction in relation to “Operation Choke Point 2.0” (OCP 2.0). Whistleblowers claim that the agency has been hiding and disposing of documents connected to an alleged crackdown on cryptocurrency activities, which has increased focus on the FDIC’s operations.

Senator Cynthia Lummis Demands FDIC Preserve Documents Tied To OCP 2.0

In a letter penned on January 16, 2025, Senator Cynthia Lummis wrote to FDIC Chair Marty Gruenberg urging swift action to safeguard all records associated with OCP 2.0. The initiative, it was claimed, represented a joint effort among multiple agencies aimed at restricting crypto companies’ use of banking facilities.

Senator Lummis, a supporter of cryptocurrency, cautioned that the destruction of these documents or retaliation against whistleblowers could lead to criminal investigations by the Department of Justice. She underscored that interfering with Senate scrutiny is illegal and unacceptable. Moreover, the letter hinted at allegations made by whistleblowers about tight surveillance of staff access to these materials to prevent any leaks.

Addressing, Marty Gruenberg,  the FDIC Chair, pro-crypto Senator Cynthia Lummis added,

Here’s a more conversational and friendly way to convey the same message: “Please halt all illegal activities and destructive behavior towards the materials immediately, and put an end to any retaliatory actions. I appreciate your cooperation.

Furthermore, this warning emerges alongside rumors that Donald Trump’s financial consultants, which includes Elon Musk, are contemplating the abolition of the FDIC as part of a planned revamp in the banking sector. The suggested adjustments involve combining the roles of the FDIC, OCC, and nonmonetary duties of the Federal Reserve to simplify regulation. Additionally, there have been whispers about moving deposit insurance obligations to the Treasury Department.

Whistleblower Allegations and FDIC Compliance Issues

It’s claimed that senior officials at the Federal Deposit Insurance Corporation (FDIC) have taken measures aimed at preventing the disclosure of crucial details related to OCP 2.0. These actions allegedly involve warnings of potential lawsuits towards employees who voice their concerns and intentional efforts to discard vital documents.

The dispute encompasses the winding down processes of Signature Bank and Silvergate Bank, financial entities closely linked to the cryptocurrency sector. The shuttering of these institutions has become a key focus in wider probes concerning the intensifying clampdown on crypto-related enterprises.

Significantly, Senator Cynthia Lummis has raised questions regarding the U.S. Marshals’ intended Bitcoin sales from seized assets. Lummis expressed apprehension about the timing of these sales, arguing that it conflicts with President-elect Donald Trump’s proposed Bitcoin Reserve policy.

Scott Bessent Opposes CBDC Amid Crypto Debate

Currently, Scott Bessent, who is being considered for President Donald Trump’s Treasury position, has expressed his disagreement with establishing a U.S. central bank digital currency (CBDC). In a recent Senate hearing, Bessent stated that the U.S. dollar offers secure investment options, rendering a CBDC unnecessary as it stands.

In simpler terms, Scott Bessent, President Trump’s pick for Treasury Secretary, expressed that he doesn’t foresee a necessity for the United States to develop its own central bank digital currency (CBDC).

Agreed. Now let’s make sure it’s in law.

— Tom Emmer (@GOPMajorityWhip) January 16, 2025

Bessent shares similar views as Trump regarding Bitcoin, favoring it while expressing doubts about foreign Central Bank Digital Currencies (CBDCs). He underlined that Bitcoin mining serves as a barrier against other countries adopting centralized digital currencies, thereby echoing Trump’s pro-cryptocurrency stance and signaling the administration’s inclination towards decentralized financial systems.

Nevertheless, more recently, Scott Bessent, Trump’s nominee for Treasury, has been under review by Senator Elizabeth Warren before his Senate Finance Committee hearing for confirmation. In a 31-page letter, Senator Warren expresses doubts about Bessent’s stance on cryptocurrency regulation, particularly the possible control of OFAC over stablecoins to tackle issues such as money laundering.

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2025-01-17 00:36