At a congressional hearing on Wednesday, the heads of major US Banks like Citigroup, Bank of America, and Wells Fargo were questioned.
Leading American banks’ executives announced on Wednesday that they have no plans to provide financing for cryptocurrency miners.
During a hearing of the House Financial Services Committee, Rep. Brad Sherman (D-Calif.), a critic of cryptocurrency mining, asked the heads of three significant banks whether they intended to support cryptocurrency mining.
Jane Fraser, CEO of Citigroup, remarked, “I don’t think so. Brian Moynihan, the CEO of Bank of America, and Charles Scharf, the CEO of Wells Fargo, both stated that their banks had no intentions for that either.
Rep. Jared Huffman (D-Calif.), who chairs a congressional subcommittee, said in April. The Natural Resources Committee of the House of Representatives enlisted nearly two dozen Democratic colleagues to encourage federal environmental officials to look into the effects of cryptocurrency mining more thoroughly.
As energy costs have risen sharply and the price of bitcoin (BTC) has fallen, it has become more challenging for miners to raise funds. Since many businesses are attempting to fill the hole left by the miners, miners have had to get inventive. For instance, the decentralized finance (DeFi) company Maple Finance is launching a $300 million lending pool for medium-sized bitcoin miners in Australia and North America.
As miners struggle with the declining value of cryptocurrencies, industry participants also anticipate some mergers and acquisitions.
