Big bank CEOs don't plan to finance crypto mining

Quick Take

  • Major bank CEOs do not have plans to finance crypto mining, they said during a congressional hearing on Wednesday.
  • CEOs from Bank of America, Wells Fargo & Company and Citigroup weighed in on crypto mining during questioning by Rep. Brad Sherman (D-Calif.). 

Some of the largest banks in the United States do not have plans to finance crypto mining, CEOs said during a congressional hearing on Wednesday.

Chief executive officers of major banks including Citigroup and Bank of America appeared on Wednesday before the House Financial Services Committee. During the hearing, Rep. Brad Sherman (D-Calif.) asked three CEOs whether they intend to finance crypto mining,

“Are you going to finance crypto mining, which creates electricity that is then wasted in something that doesn't keep anybody's lights on, doesn't cook anybody's food,” Sherman, an outspoken critic of digital assets, asked. Cryptocurrency mining has faced sharp criticism from environmental advocates who say the technology uses too much energy. 

Citigroup CEO Jane Fraser said she does “not believe” her bank will finance crypto mining. Similarly, Bank of America Chair and CEO Brian Moynihan said “we do not have any” plans to do so. Wells Fargo & Company President and CEO Charles Scharf said he was “not aware of anything” on the topic. 

Sherman, who chairs the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, has urged regulators to increase investigations into digital asset exchanges and suggested he is open to an outright ban on cryptocurrencies. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.