The sub -committee of the US Congress Financial Services Committee will examine the bank access restrictions imposed by Biden administration to crypto currency companies on 6 February. The political and financial impacts of the application called “Operation Choke Point 2.0 ı will be handled impartially. In the session, the crypto currency sector leaders and experts will testify.
The Committee will investigate whether there are financial institutions or political authorities behind the restrictions. Marc Andreessen, one of the founders of Andrelesen Horowitz, said that similar applications have targeted different sectors in the past, but now focusing on the crypto money market. The US House of Representatives also launched a parallel investigation.
What is Operation Choke Point 2.0?
Operation Choke Point 2.0 is defined as the prevention of crypto currency companies from accessing banking services. Unlike the first version of 15 years ago, the application targets political opponents and technology initiatives. Some experts argue that restrictions are prevented from growth of the sector.
In the last four years, more than 30 crypto currency companies have lost access to bank accounts. Marc Andreessen said, “This is contrary to free market principles,” he said. Financial institutions cite the risks of crypto currency market. However, sector representatives claim that the restrictions are political motivated.
OBJECTIVES OF THE INVESTIGATION
The sub -committee will analyze the economic impact of bank services on the crypto currency market. It will be questioned whether political pressure has a role in the decisions of financial institutions. Congress members will request documents from federal institutions and sector representatives in the session.
The US House of Representatives Surveillance Committee is investigating the legal basis of financial access restrictions with a similar investigation. Crypto money companies emphasize that existing regulations disrupt innovative projects. The results of the investigation are expected to lead to new regulations for the sector.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
