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Operation Choke Point 2.0: A New Era of Debanking for Crypto and Tech Companies
As the crypto industry continues to face unprecedented challenges, a growing number of influential figures are sounding the alarm about Operation Choke Point 2.0, a secretive initiative aimed at restricting financial services to certain businesses deemed high-risk by regulators.
The term “Operation Choke Point” may sound familiar to some, as it refers to an earlier effort initiated in 2013 under President Barack Obama’s administration. The program targeted payday lenders and other financial institutions accused of facilitating illegal activities, such as money laundering or fraud. However, critics argue that the initiative went too far, leading to a wave of debanking – the practice of banks severing ties with specific businesses – that disproportionately affected legitimate companies.
Fast-forward to 2024, and it appears that Operation Choke Point has evolved into its second iteration, targeting not only payday lenders but also crypto-related businesses and tech startups. The Fed’s recent enforcement action against Customers Bank, a known crypto-friendly institution, serves as a stark reminder of the ongoing efforts to restrict financial services to these industries.
Several prominent figures in the crypto space have spoken out about this alleged campaign, citing their own experiences with debanking. Coinbase Chief Legal Officer Paul Grewal recently shared documents obtained through Freedom of Information Act requests, which allegedly reveal that the FDIC (Federal Deposit Insurance Corporation) actively urged banks to halt or avoid crypto-related activities in 2022.
Gemini’s Tyler Winklevoss has also weighed in on the matter, describing Operation Choke Point 2.0 as “in full swing.” His statement implies that the initiative is not only real but also gaining momentum under the current administration.
Furthermore, a recent survey of crypto hedge funds reported difficulties accessing basic banking services over the past three years. A staggering 120 funds – roughly half the respondents – reported receiving explicit warnings from banks about terminating their relationships, with many citing unclear or non-existent reasons for the decision.
The Trump Administration has pledged to address these concerns. During his 2024 Bitcoin conference appearance, then-President-elect Donald Trump vowed to “immediately shut down Operation Choke Point 2.0” if elected. Additionally, he promised to fire SEC Chair Gary Gensler and FDIC Chairman Martin Gruenberg on his first day in office.
While the debate surrounding debanking continues, it is clear that the crypto industry faces significant challenges in securing access to financial services. The notion of a coordinated effort by regulators to restrict banking services has gained significant traction, with influential voices within the space calling for transparency and action from lawmakers.
In light of these developments, it remains to be seen whether Trump will follow through on his promises and dismantle Operation Choke Point 2.0 as he previously pledged.
Source: cryptobriefing.com
