Wall Street Bank CEOs Tell Congress They’re Unlikely to Finance Crypto Miners

The chief executives of Citigroup, Bank of America and Wells Fargo were questioned Wednesday at a congressional hearing.

AccessTimeIconSep 21, 2022 at 7:42 p.m. UTC
Updated Sep 22, 2022 at 8:09 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

The heads of several of the top U.S. banks said Wednesday they don't have any plans to finance cryptocurrency miners.

Rep. Brad Sherman (D-Calif.), a crypto mining critic, asked the heads of three major banks whether they intended to finance crypto mining during a congressional hearing of the House Financial Services Committee.

“I do not believe so,” Citigroup CEO Jane Fraser said. Bank of America CEO Brian Moynihan and Wells Fargo CEO Charles Scharf both said their banks had no plans for that either.

In April, Rep. Jared Huffman (D-Calif.), who leads a subcommittee within the U.S. House of Representatives’ Natural Resources Committee, recruited almost two dozen Democratic colleagues to urge federal environmental officials to devote further scrutiny to the consequences of cryptocurrency mining.

Raising capital has become difficult for miners this year as the price of bitcoin (BTC) has slumped and energy prices have skyrocketed. Miners have had to get creative, while various companies are attempting to fill the void for miners. Decentralized finance (DeFi) firm Maple Finance, for example, is starting a $300 million lending pool for mid-size bitcoin miners across North America and Australia.

Industry participants also expect some mergers and acquisitions as miners grapple with lower crypto prices.

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Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

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