Documents reveal alleged government interference urging banks to sever ties with crypto businesses, sparking industry backlash.
Operation Chokepoint 2.0: Crypto’s Fight Against Financial Exclusion
The uncovered documents reportedly show that the Biden administration, via the FDIC, requested banks to “pause all crypto-asset related activity.” This echoes concerns of a covert operation reminiscent of the Obama-era “Operation Chokepoint,” targeting industries deemed high-risk.
Industry Leaders Respond
Paul Grewal of Coinbase criticized the actions as politically motivated regulatory overreach. Grewal called for the incoming administration to reverse these policies, emphasizing that “law-abiding American businesses should be able to access banking services without government interference.”
Silvergate Bank’s Collapse and Regulatory Impact
Chris Lane, Silvergate Bank’s former CTO, claimed federal limitations on holding U.S. dollar deposits for digital asset clients led to the bank’s downfall, likening it to being “shot in the back.”
Bipartisan Pressure for Transparency
Leaders across political and industry lines demand clarity and action. David Sacks, the new AI and crypto czar, urged a thorough investigation into the implications of these policies, citing harm caused by regulatory choke points.
Renewed Scrutiny Following Thanksgiving Revelations
Marc Andreessen’s comments on tech founders being “debanked” for political reasons added momentum to the debate. Industry advocates pledge to continue seeking transparency and protect crypto innovation from undue interference.
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