The claim that the US government is suppressing the crypto industry by isolating it from banks under the Joe Biden administration has drawn attention to the “Operation Chokepoint 2.0” effort by experts. With the re-election of former President Donald Trump, the crypto industry is awaiting a reform in which the US banking industry will embrace cryptocurrencies. US lawmakers have increased investor interest by targeting the government’s regulatory overreach.
Operation Chokepoint 2.0 Under Review
The US Committee on Oversight and Government Reform has launched investigations into allegations of crypto companies and individuals being deprived of banking services. Committee Chairman James Comer aims to collect testimony from affected individuals and companies.
Andreessen Horowitz co-founder Marc Andreessen described the debanking process implemented during the Biden era as “Operation Chokepoint 2.0.” Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal also supported this view. “Financial regulators have used a variety of tools to undermine the digital asset industry,” Grewal said.
SEC’s Aggressive Regulations
Uniswap Labs founder Hayden Adams stated that bank accounts were closed without prior notice. Armstrong, on the other hand, stated that banks terminated their relationships with more than 30 technology companies and that the SEC and former Chairman Gary Gensler were “trying to destroy the industry through illegal means.”
What to Expect During the Investigation Process?
More than 120 crypto hedge funds have reportedly been excluded from banks in the last three years. The committee stated that First Lady Melania Trump faced the same fate due to her political leanings. The Audit Committee plans to terminate Operation Chokepoint 2.0 with the goal of ensuring a fair crypto trading environment.
US Banks Ready to Adopt Crypto
Circle CEO Jeremy Allaire predicts that the Trump administration’s new crypto policies will end Operation Chokepoint 2.0 and cooperate with the banking industry. Bank of America CEO Brian Moynihan stated that the US banking industry is willing to accept cryptocurrencies.
Wall Street giants are also planning to enter the crypto market and aim to benefit from the great opportunities in this field. These developments in the crypto industry offer important clues about how financial technologies will be shaped in the future.
“Financial regulators have used a variety of tools to undermine the digital asset industry” -Paul Grewal.
“The US banking industry is ready to accept crypto payments.” -Brian Moynihan.
The investigation conducted by the Audit Committee aims to protect crypto users and investors from unfair government control. This process may include important steps towards ensuring a neutral crypto trading environment in the United States.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
