Stephen Gannon, a partner at Davis Wright Tremaine LLP, said that the U.S. government needs to address the harm caused by "debanking" crypto-linked individuals and firms under what is being referred to as Operation Choke Point (OCP) 2.0. Gannon made this statement during a hearing on February 5.

"Justice delayed is justice denied," said Gannon. "The harm caused by OCP 2.0 and debanking has been suffered now for years and is ongoing. The government should fix what it has broken."

In his testimony, Gannon explained that federal regulators have employed various methods over recent years to implement OCP 2.0. He noted that the concept of "reputational risk" lacks consistent clarity but can be used by regulators to find fault with any aspect of banking, including those who conduct business with legal yet politically disfavored industries. According to Gannon, regulators consider themselves stakeholders, making findings of reputational risk nearly indisputable. He further mentioned that regulators designate certain industries as "high risk," compelling banks to expel those customers, and misuse the term "safety and soundness" by linking it to almost any form of risk.

Gannon urged Congress and the Trump Administration to take action to remedy the harm caused by OCP 2.0 and prevent its recurrence. He suggested remedial actions such as publishing the Office of the Comptroller of the Currency's (OCC) Fair Access Rule in the Federal Register, providing transparency regarding what occurred in OCP 2.0, eliminating ambiguity in banking supervision, creating new standards for account closures not related to national security or criminal activity concerns, and establishing a path for citizens harmed by illegal regulatory actions to seek justice. He also recommended that Congress continue investigating debanking in the crypto industry and enact clear rules for crypto issuers and exchanges.

According to Crypto Briefing, the House Oversight Committee has initiated an investigation into debanking efforts targeting blockchain and crypto-affiliated firms and individuals. Under Rep. James Comer's leadership, the committee sent letters to industry associations and businesses requesting information about being unlawfully denied banking services. The letter included a statement from Coinbase CEO Brian Armstrong indicating that 30 crypto founders have been debanked.

On February 5, the Federal Deposit Insurance Corporation (FDIC) released 175 documents related to its supervision of banks involved in crypto-related activities, according to a press release. FDIC Acting Chairman Travis Hill said that these documents reveal how FDIC's actions towards banks conveyed a message that proceeding with crypto-related activities would be extraordinarily difficult—if not impossible—leading many banks to cease trying altogether. Hill added that moving forward, FDIC will revise its approach to crypto-related supervision.

Gannon previously served as a senior legal executive at Citizens Financial Group, Capital One Financial Corporation, and Wachovia Securities according to Davis Wright Tremaine's website. He provides regulatory and strategic guidance to participants in the banking industry.