Senator Cynthia Lummis Warns FDIC Over Allegations of Document Destruction

• Senator Lummis requires FDIC to preserve documents tied to OCP 2.0 and warns against destruction.
• Trump’s advisory team is considering joining FDIC with OCC and redirecting deposit insurance to the Treasury Department.
• Treasury nominee Scott Bessent opposes CBDCs, aligning with pro-BTC policies and decentralized financial systems.

Senator Cynthia Lummis has issued a formal warning to the Federal Deposit Insurance Corporation (FDIC) over accusations of document destruction linked to Operation Choke Point 2.0. The allegations, brought forward by whistleblowers, accuse the FDIC of withholding and destroying critical materials tied to an anti-crypto initiative.

Lummis Demands Document Preservation

In a letter dated 16/01/2025, Lummis demanded that FDIC Chair Martin Gruenberg retain all records concerning OCP 2.0. This reportedly entailed combined efforts by several agencies to freeze banking facilities. The pro-crypto senator urged against any moves against whistleblowers or further destruction of records, stating that any such actions would result in criminal referrals to DOJ.

Whistleblower claims cited in the letter include allegations of restricted staff access to these documents and monitored attempts to prevent disclosures. Lummis has demanded immediate compliance, calling for an end to the destruction of materials and any retaliatory measures.

Controversy Surrounding FDIC Practices

The FDIC is also under scrutiny for its role in the closures of Signature Bank and Silvergate Bank, both known for their links to the crypto sector. These actions are central to ongoing investigations into a broader crackdown on cryptocurrency businesses.

Donald Trump’s advisory team is reportedly exploring the elimination of the FDIC as part of a suggested banking sector overhaul. This plan could involve connecting the FDIC with the OCC and transferring deposit insurance obligations to the Treasury Department.

Scott Bessent’s Stance on CBDCs

In a related development, Scott Bessent voiced opposition to a central bank digital currency (CBDC). During a Senate hearing, Bessent argued that the U.S. dollar already serves as a secure investment alternative. His stance aligns with Trump’s pro-Bitcoin policies, emphasizing Bitcoin’s role in safeguarding against foreign adoption of centralized digital currencies.

Meanwhile, Senator Elizabeth Warren has raised concerns about Bessent’s views on crypto regulation, submitting a 31-page letter for his Senate Finance Committee hearing. The letter questions Bessent’s stance on stablecoins and regulatory authority under OFAC to address risks like money laundering.