The main lawyer of the US Crypto Exchange Coinbase (MOIN) testified to the abuse of authority from regulators who raised barriers between banks and cryptophy companies in a hearing of House Financial Services Committee on Thursday, marking the latest progress in Digital Assets Industry’s Reversal of Political Resistance in Washington.

Coinbase chief of legal officer Paul Grewal’s complaints about “regulation of exhaustion” was met with a broad deal from Republican lawmakers who were eager to criticize the bite of the Bid -the crypto performance. The legislators also agreed with Grewal’s view that financial regulators such as FDIC publicly insisted that they were not against crypto while privately privately away from the industry.

The House’s Hearing, led by the panel’s supervisory subsidy committee, came directly on the heels of a Wednesday Senate Bank Committee’s hearing, which also buried in crypto “Banking” in the USA

“Biden -Regulators Tyr to Vague, interpreting regulatory letters that threaten banks with negative investigative results and fines if they continue their partnership with digital asset companies,” said representative Dan Meuser, a Pennsylvania Republican who leads the house’s subcommittee. “This is seriously overreach, one that not only undermines innovation but directly harms consumers by limiting their access to new and beneficial financial products.”

Meanwhile, the panel’s Democrats marked concerns with President Donald Trump’s own crypto business efforts and pushed back on the argument that warning of banks against ties with the unstable, fraudulated sector was appropriate.

“Supervisory authorities asking banks to consider the risk associated with the cryptocurrency industry does not constitute wiping out as my Republican friends indicate,” said Representative Al Green, a Texas legislator who is the Ranging Democrat of the Under Committee. “Supervisors simply called on banks to exercise caution when dealing with this new and potentially risky industry.”

A frustrated judge

As the question was placed under the light of congressional investigation for the second day in progress, Coinbase has been basking in a combination of positive court atmosphere and an FDIC policy overall. The company’s legal persecution of FDIC documents under the Law on Freedom Information has not only gone its way, but a judge in the US District Court of District of Columbia was Incensed about the way FDIC opposed its communication with Krypto banks.

Read more: US regulator said to banks to avoid crypto, letters obtained by Coinbase Reveal

An FDIC lawyer had asked Judge Ana Reyes to give a little extra time while the agency adapts to new leadership, but the judge refused and said, “I don’t care who your leadership is.” She claimed that FDIC’s attitude towards the case had been “ridiculous” according to a court transcription and that she would not only refuse the delay but to “speed it out dramatically.” The judge also demanded answers to accusations that the regulator may have destroyed documents related to the case.

“Do you understand that right now, if I find – and there will be a study – that documents were destroyed or if we can’t find out if documents were destroyed, guys are coming in for some serious sanctions?” asked.

FDIC -Turn

The FDIC jumped to release more documents before the court’s deadline this week, and acting President Travis Hill, as President Donald Trump raised when he took office last month, said he ordered agency staff to review supervisory communication with crypto banks. The regulator publicly published “a large batch of documents” in the meantime, he said.

“Acting President Hill has begun to fix this wrong,” Coinbase Coinbase said of legal officer Paul Grewal in a post on social media page X, adding that “much more discovery is required.”

While the FDIC has taken much of the heat of US banking regulators ‘efforts to limit banks’ exposure to crypto clients, Senator Cynthia Lummis revealed an internal Federal Reserve Document in a consultation Wednesday, as she said, “Hard proof of Operation Chokepoint.” It is the name that the industry has adopted to characterize the set of informal, behind the scenes actions made by regulators to push American banks to downfall crypto. Fed’s policy seemed to suggest that regulatory control for bankers participating in controversial speech or activities.

The interest from the House Financial Services Committee will continue next week with an 11th February consultation entitled “A Golden Age of Digital Assets: Mapping a Path Forward.” The “Golden Age” phrase repeats what Trump’s crypto -czar, David Sacks, said, came for the industry at its first press conference.