Blockchain News

Blockchain Association Files Further FOIA Requests Over Banking Closures

More The Blockchain Association, a cryptocurrency advocacy group, has made Freedom of Information Act requests to two authorities seeking information on recently shuttered crypto-friendly institutions. 

The association announced on April 14 that it had filed Freedom of Information Act requests with the Federal Housing Finance Agency and the New York Department of Financial Services, a little more than a month after initially requesting 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.

Following the seizure of Signature Bank and the bankruptcy of Silvergate Bank, the group is seeking further information on the de-banking of cryptocurrency enterprises. The BA asked the NYDFS to “seek to understand whether Signature Bank’s closure was the result of the bank’s insolvency or a decision to send an anti-crypto message despite the bank being fully solvent.”

The association also stated that it was looking into whether Silvergate’s failure “was the result of a politically-motivated decision by the Federal Home Loan Bank of San Francisco, which is overseen by the FHFA, to take the extraordinary and unusual action of pulling a loan made to Silvergate only months earlier.”

Silvergate’s parent business declared in early March that it will “wind down operations” for the crypto and tech-focused bank. Silicon Valley Bank, a competitor, went bankrupt on March 10 as a result of a bank run. On March 12, the Treasury, Federal Reserve, and other authorities shuttered Signature Bank.

On April 16, the Blockchain Association and the DeFi Education Fund filed a brief in a United States District Court challenging Tornado Cash’s sanctioning. The Blockchain Association is a crypto industry advocacy and lobbying organisation with roughly a hundred members, including industry leaders, investors, firms, organizations, and initiatives.

According to campaign financing data provider OpenSecrets, the group spent $1.9 million lobbying the US government in 2022. 


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