Senator Cynthia Lummis Demands FDIC Preserve Documents Tied to OCP 2.0
Senator Cynthia Lummis has issued a warning to the Federal Deposit Insurance Corporation (FDIC) regarding allegations of document destruction related to “Operation Choke Point 2.0” (OCP 2.0). Whistleblowers have accused the agency of withholding and destroying materials tied to the alleged anti-crypto campaign. This has intensified scrutiny over the Federal Deposit Insurance Corporation’s practices.
In a letter dated January 16, 2025, Senator Cynthia Lummis addressed FDIC Chair Marty Gruenberg, demanding immediate action to preserve all documents linked to OCP 2.0. The initiative allegedly involved a multi-agency effort to limit crypto businesses’ access to banking services.
The pro-crypto Lummis warned that any destruction of these documents or retaliation against whistleblowers could result in criminal referrals to the Department of Justice. She emphasized that obstructing Senate oversight is illegal and unacceptable. The letter also referenced whistleblower claims that staff access to these materials is being closely monitored to prevent disclosure.
“This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately.”
Moreover, this warning comes amid reports that Donald Trump’s advisory team, including Elon Musk, is considering eliminating the FDIC as part of a banking sector overhaul. The proposed changes include merging the FDIC, OCC, and Federal Reserve’s nonmonetary functions to streamline regulation. Advisors have also floated the idea of transferring deposit insurance responsibilities to the Treasury Department.
Whistleblower Allegations and FDIC Compliance Issues
Whistleblowers allege that FDIC management has taken steps to prevent the release of critical information tied to OCP 2.0. These efforts reportedly include threats of legal action against staff who speak out and deliberate attempts to destroy key documents.
Controversy Surrounding Signature Bank and Silvergate Bank
The controversy extends to the wind-down of Signature Bank and Silvergate Bank, two institutions with strong ties to the crypto industry. These closures have been central to ongoing investigations into the broader crackdown on crypto businesses.
Notably, the pro-crypto Senator Cynthia Lummis recently probed the U.S. Marshals over their proposed plans to sell seized Bitcoin. Lummis flagged concerns about the timing of the sale, citing its contradiction with President-elect Donald Trump’s Bitcoin Reserve agenda.
Scott Bessent Opposes CBDC Amid Crypto Debate
Meanwhile, Scott Bessent, President Donald Trump’s Treasury pick, has voiced opposition to the creation of a U.S. central bank digital currency (CBDC). In a recent Senate hearing, Bessent argued that the U.S. dollar already provides secure investment alternatives, making a CBDC unnecessary.
President @realDonaldTrump‘s nominee for Treasury Secretary, Scott Bessent: “On CBDC’s, I see no reason for the U.S. to have a central bank digital currency.”
Agreed. Now let’s make sure it’s in law. pic.twitter.com/HaVD9Wjlkc
— Tom Emmer (@GOPMajorityWhip) January 16, 2025
The controversy surrounding Operation Choke Point 2.0 and the Federal Deposit Insurance Corporation’s handling of documents has raised concerns about the agency’s compliance with oversight and transparency requirements. The alleged destruction of documents and retaliation against whistleblowers are serious issues that require immediate attention and action.
The controversy also highlights the ongoing debate surrounding the role of central banks and the potential creation of a central bank digital currency (CBDC). While some argue that a CBDC would provide a secure and efficient payment system, others argue that it would undermine the existing financial system and create new risks.
As the debate continues, it is essential for policymakers and regulatory agencies to prioritize transparency, accountability, and oversight to ensure that the financial system is stable, secure, and serves the interests of all stakeholders.
Q: What is Operation Choke Point 2.0?
A: Operation Choke Point 2.0 is an alleged anti-crypto campaign by the Federal Deposit Insurance Corporation (FDIC) to limit crypto businesses’ access to banking services.
Q: What is the controversy surrounding the FDIC’s handling of documents?
A: The controversy surrounds allegations that the FDIC is destroying documents and retaliating against whistleblowers who have come forward to expose the agency’s actions.
Q: What is the significance of Senator Cynthia Lummis’ letter to the FDIC?
A: The letter demands immediate action to preserve all documents linked to OCP 2.0 and warns that any destruction of these documents or retaliation against whistleblowers could result in criminal referrals to the Department of Justice.
Q: What is the debate surrounding the creation of a central bank digital currency (CBDC)?
A: The debate centers on whether a CBDC would provide a secure and efficient payment system or undermine the existing financial system and create new risks.
Q: What is the significance of Scott Bessent’s opposition to the creation of a CBDC?
A: Bessent’s opposition highlights the ongoing debate and suggests that the creation of a CBDC is not a priority for the Trump administration.
