The US Oversight Committee probes into Operation Chokepoint 2.0, the process of debanking crypto firms and individuals.šš
Thešš US government under Joe Biden has allegedly been stifling the crypto industry through the process of debanking, which experts labeled āOperation Chokepoint 2.0.ā With Donald Trumpās re-election, the crypto industry expects a reform that will lead to the US banking industry embracing cryptocurrencies. US lawmakers have set sight on the governmentās regulatory overreach, sparking investor enthusiasm.
In a recent development, the US Committee on Oversight and Government Reform has initiated investigations on the alleged debanking of crypto companies and individuals. While debanking refers to the isolation of crypto firms from the banking sector, the US lawmakersā move intends to put an end to the authorityās indirect control over the crypto space.
US Oversight Committee Probes into Operation Chokepoint 2.0
According to a Forbes report, the US Oversight Committee has launched investigations on the āimproper debankingā of individuals and organizations related to crypto. Under the leadership of Chair James Comer (R-Ky.), the Committee aims to collect testimonies from affected individuals and companies.
On Friday, the US Oversight Committee sent a letter to industry leaders, revealing their investigation plans. By examining the groups claiming to be debanked, the committee seeks to determine whether the trend is driven by their independent decisions or by government overreach.
Industry Leaders Allege Governmentās Indirect Control Over Crypto
The term āOperation Chokepointā could be traced back to former President Barack Obamaās reign when financial services were restricted for high-risk industries. Reflecting on the term, Andreessen Horowitz co-founder Marc Andreessen called the process of debanking during the Biden era āOperation Chokepoint 2.0.ā
Industry experts like Coinbase CEO Brian Armstrong and CLO Paul Grewal corroborated Andreessenās comments. Grewal posited, āFinancial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry.ā
Chokepoint 2.0: SECās Aggressive Regulation Sparks Backlash
Notably, Uniswap Labs Founder Hayden Adams complained that his bank accounts were closed without prior notice. He added, āI know many individuals and companies who have been similarly
Similarly, Brian Armstrong revealed that banks closed ties with more than 30 tech companies. He added that the US SEC and former Chair Gary Gensler attempted to āunlawfully kill our [their] entire industry.ā He also addressed it as the Biden governmentās āmost unethical and un-Americanā action.
Meanwhile, Rippleās CTO, David Schwartz, described Operation Chokepoint 2.0 as the governmentās āindirectā regulation of the crypto industr
Investigation on Debanking: What To Expec
Reportedly, more than 120 crypto hedge funds were debanked over the past three years. While real estate and private credit investors enjoyed banking services, crypto hedge funds were denied the same facilities. As cited by the committee, First Lady Melania Trump shared her personal experience of being debanked, which she attributes to political bias.t?y. simply for working in the crypto industry.ā
With an active investigation, the Oversight Committee intends to protect crypto users and traders from unfair government control. The agency envisions ensuring an unbiased crypto trading atmosphere in the United States and thereby terminating Operation Chokepoint 2.0. The unredacted FDIC files that Coinbase secured will undoubtedly be useful in this investigation.
US Banks Remain Ready To Embrace Crypto
Recently, Circle CEO Jeremy Allaire expressed optimism about the future of crypto, anticipating that banks will soon facilitate cryptocurrency trading. He believes that Trumpās new crypto policies will cease Operation Chokepoint 2.0, collaborating with the banking industry.
At the same time, Bank of Americaās CEO Brian Moynihan expressed the US banking industryās willingness to accept cryptocurrencies. Wall Street giants are also eying the crypto market. They seek to make a strategic entry into the space to tap into its immense opportunities.
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