A new GOP bill aims to tackle the issue of debanking among crypto companies and other industries considered high-risk.
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New Republican Proposal Seeks to Halt Debanking of Crypto Firms and Other High-Risk Sectors
In an attempt to resolve the growing concern of debanking among crypto businesses and other industries deemed high-risk, the Republicans are stepping up with a proposed solution. This legislative attempt is aimed at ensuring these sectors aren’t left out in the cold by financial institutions.
Details of the Proposed Legislation
A new bill, introduced by GOP lawmakers, has been crafted to put an end to the debanking issue. The legislation, known as the “Financial Inclusion Act,” is intended to prevent financial institutions from categorizing certain industries as high-risk and subsequently cutting them off from banking services.
Related: OKX Executive Highlights Importance of Relationship Building as a Buffer Against Debanking
This bill comes as a response to Operation Choke Point, an initiative launched under the Obama administration. The operation targeted businesses that were considered high-risk, including payday lenders and firearms dealers, with the intention of cutting off their access to banking services.
Crypto Companies and Debanking
The issue of debanking isn’t new to the crypto industry. Many crypto businesses have found themselves without banking services, a predicament that threatens their survival. The proposed legislation could be a lifeline for these companies, offering them a chance to continue their operations without the fear of losing access to critical banking services.
Related: Crypto Startups Evading Debanking: Insights from Ledn Co-founder
The Role of the OCC
The Office of the Comptroller of the Currency (OCC) plays a significant role in this legislation. The bill mandates the OCC to ensure that financial institutions do not discriminate against legal businesses, including those in the crypto sector. The OCC would also be required to report to Congress annually on their efforts to enforce this mandate.
Other High-Risk Industries
Related: Texas Representative Proposes Law to Establish Bitcoin Strategic Reserve
While the crypto industry stands to benefit from this legislation, it’s not the only sector that’s been hit by the debanking issue. Other industries considered high-risk, such as firearms dealers and payday lenders, also stand to gain from the proposed bill.
What’s Next?
The future of this bill remains uncertain. It will have to pass through the legislative process, which is never a guarantee. However, if it does become law, it could bring about significant changes for crypto businesses and other high-risk industries that have been struggling with debanking.
John is a renowned journalist and blockchain enthusiast with over 12 years of experience covering global financial trends and cryptocurrency markets. His sharp insights and ability to break down complex topics make him a cornerstone of finandcrypto.com. Known for his analytical skills, John is passionate about delivering content that empowers the crypto community.
