Texas Representative Criticizes Trump’s Memecoin Amid Debanking Hearing Debate
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In a heated discussion during the February 6th Congressional debanking hearing, Texas Representative Al Green raised concerns about former President Donald Trump’s memecoin initiative.
Speaking at the House Financial Services Committee’s Oversight and Investigations Subcommittee, Green accused Trump of promoting a deregulation agenda favorable to the cryptocurrency industry while launching his controversial digital asset.
Trump’s Memecoin Sparks Controversy
Green strongly contested claims that the Biden administration orchestrated what some lawmakers and crypto executives call “Operation Choke Point 2.0.” This term describes alleged efforts to cut off banking services for crypto companies.
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“Operation Choke Point 2.0 is a fake program, never initiated,” Green declared. He argued that federal regulators merely warned financial institutions about potential risks tied to cryptocurrency firms rather than forcing them to sever ties.
Supporting Green’s statement, Shayna Olesiuk, banking policy director at Better Markets, testified that regulatory guidance did not constitute debanking. “Regulators asking banks to consider the risks associated with the cryptocurrency industry does not amount to debanking,” she said.
The debanking hearing also included testimony from Coinbase’s Chief Legal Officer Paul Grewal, who accused federal agencies of creating a hostile environment for crypto businesses.
According to Grewal, the Federal Deposit Insurance Corporation (FDIC) misled the public by asserting that crypto firms could access banking services while privately discouraging banks from working with these companies.
“You had question after question raised if even a hint of interest was shared that the bank wanted to enter into a basic service for its customers involving crypto or to facilitate basic crypto transactions,” Grewal said, describing the government’s actions as “regulation by exhaustion.”
The Bigger Picture of Crypto Regulation
The debanking hearing marked the first meeting of the oversight subcommittee during the 119th Congress.
The session focused on claims that crypto businesses were unfairly denied banking services. Green redirected attention to Trump’s memecoin, which was launched on January 17th Green criticized Trump’s actions, suggesting that lawmakers should scrutinize the implications of a former president promoting a digital asset.
The broader issue of crypto regulation was a recurring theme in both the February 5th and February 6th hearings.
On February 5, the Senate Banking Committee held discussions about debanking among marginalized communities, while in the House, Green took the opportunity to call for Trump’s impeachment over unrelated policy decisions.
Green’s vocal criticism highlights growing tensions between Democrats and Republicans over cryptocurrency oversight and Trump’s ongoing influence in the space.
Meanwhile, the Freedom of Information Act lawsuit initiated by Coinbase revealed that the FDIC sent letters in 2022 advising banks to pause all crypto asset-related activity.
These developments underline the challenges faced by crypto companies seeking traditional banking services amid increased regulatory scrutiny.
As debates continue, Trump’s memecoin adds another layer of complexity to discussions on crypto regulation, with lawmakers questioning the ethics and legality of such initiatives.
In addition to the debates surrounding crypto regulation, Melania Trump’s launch of her own memecoin, MELANIA, has added more fuel to the fire. Just two hours after its release, $MELANIA reached a market cap of $6 billion, drawing attention as her husband’s TRUMP token experienced a sharp 38% drop.
