Docs showing Biden admin giving cold shoulder to crypto alarms industry leaders
The cryptocurrency industry is in an uproar after documents were uncovered showing that the Biden administration instructed banks not to engage in cryptocurrency business. The documents, which have been linked to a program referred to as “Operation Chokepoint 2.0,” have raised concerns among leaders in the crypto space.
Chris Lane, the former chief technical officer of Silvergate Bank, has accused federal regulators of contributing to his bank’s collapse following the release of the documents. Lane took to social media to express his frustration, stating that regulators severely limited the amount of U.S. dollar deposits the bank could hold for digital asset clients, ultimately disrupting their business model.
David Sacks, President-elect Donald Trump’s new artificial intelligence and crypto czar, has called for a closer look at Operation Chokepoint 2.0, citing numerous stories of people being negatively impacted by the program.
Last week, Paul Grewal, the Chief Legal Officer for Coinbase, shared documents obtained through Freedom of Information Act requests that revealed the FDIC’s directive to banks to “pause all crypto-asset related activity.” Grewal emphasized the need for transparency and pledged to continue fighting for access to unredacted copies of the documents.
The concerns over regulators stifling crypto-related activities have been further highlighted by tech investor Marc Andreessen, who recently stated on a podcast that more than 30 tech founders had been “debanked” for political reasons. Andreessen drew parallels to the Obama-era program Operation Chokepoint, which aimed to restrict high-risk industries such as payday lenders and gun dealers.
As the debate over government interference in the cryptocurrency industry continues, industry leaders are calling for a reversal of what they perceive as politically motivated regulatory decisions. The incoming administration has the opportunity to address these concerns and provide clarity on the future of cryptocurrency regulation.
Fox News Digital reached out to the FDIC and SEC for comment but did not receive a response at the time of publication. The unfolding situation underscores the challenges facing the cryptocurrency industry as it navigates regulatory hurdles and seeks to establish a secure and stable environment for growth and innovation.
