Blockchain Association Demands Transparency: Files Additional FOIA Requests Over Banking Closures
- Rudolph Harmon
- April 17, 2023
- News, Blockchain
- Banking, Blockchain, Silvergate, US
- 0 Comments
The Blockchain Association, a renowned organization advocating for the crypto industry, has emphasized the importance of clarity in recent regulatory actions taken against banks that are friendly toward digital assets.
In line with this, they have submitted additional Freedom of Information Act requests to two regulatory bodies, seeking information on banks that have recently shut down their services to the cryptocurrency industry.
Freedom of Information Law Fillings
In an official statement released on April 14th, the Blockchain Association has disclosed that it has submitted Freedom of Information Law (FOIL) requests to the Federal Housing Finance Agency and the New York Department of Financial Services.
This move comes shortly after the organization’s initial filing for additional information from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency.
Reason for this Move
The purpose of these requests is to gain further insight into the de-banking of cryptocurrency companies, specifically in light of the seizure of Signature Bank and the collapse of Silvergate Bank.
The association has made it public that an investigation is underway to determine if the collapse of Silvergate was a politically-motivated decision by the Federal Home Loan Bank of San Francisco. The FHFA, responsible for overseeing the bank, had taken the uncommon step of revoking a loan that had been granted to Silvergate just a few months earlier.
Silvergate’s parent company had announced in early March that they were winding down operations, and its industry peer, Silicon Valley Bank, had also collapsed on March 10 after a bank run. On March 12, Signature Bank was closed by the Treasury, Federal Reserve, and other agencies.
Court Filing by Blockchain Association
A court brief was recently filed by the Blockchain Association and the DeFi Education Fund in a United States District Court regarding the sanctioning of Tornado Cash.
The Blockchain Association is an esteemed group that advocates and lobbies for the crypto industry, boasting a membership of around a hundred industry executives, investors, companies, organizations, and projects. According to campaign finance data firm OpenSecrets, the association spent $1.9 million lobbying the U.S. government in 2022.