Rep. French Hill recently made a bold statement during a hearing on financial technology, signaling his intention to investigate alleged efforts by regulators to cut off banking services to crypto businesses. Hill, who is vying for the position of House Financial Services Committee leader, emphasized the importance of legal businesses having access to financial services in the country.

The concerns raised by industry leaders were further exacerbated by remarks made by a16z co-founder Marc Andreessen on the Joe Rogan podcast. Andreessen discussed federal authorities pressuring banks to terminate accounts linked to crypto and other industries, prompting fears of a resurgence of “Operation Choke Point 2.0.” This term refers to suspected attempts to restrict banking access for certain sectors, reminiscent of the original Operation Choke Point initiated by the Justice Department in 2013.

During the hearing, executives from Stellar Development Foundation and Anchorage Digital shared their experiences of grappling with challenges in maintaining banking relationships. Stellar CEO Denelle Dixon recounted having to approach ten different banks, only to face rejections without any explanation.

The impending leadership change within the House Financial Services Committee adds an interesting dynamic to the situation. As current Chair Patrick McHenry prepares to step down, Republicans like Hill are poised to assume leadership roles. With President Donald Trump vowing to halt regulatory actions akin to Operation Choke Point, there is anticipation of a potential shift in Congress’s approach towards crypto and financial access.

In a 2024 report, the Federal Deposit Insurance Corporation clarified that banks are not prohibited from serving specific industries. However, concerns persist about the consistent enforcement of such policies. The ongoing debate over stablecoin regulation also took center stage during the hearing, with lawmakers deliberating on the appropriate level of oversight delegated to state regulators.

While time constraints present a challenge, Hill expressed confidence in advancing crypto-related legislation and achieving consensus. Similarly, Rep. Maxine Waters expressed optimism about reaching a bipartisan agreement on stablecoin regulations before the new Congress convenes, acknowledging the hurdles posed by a busy legislative agenda.

As the crypto industry navigates regulatory uncertainties and strives for financial inclusivity, the actions and decisions taken by Congress in the coming year will undoubtedly shape the landscape for businesses and consumers alike.