Unveiling Operation Chokepoint 2.0's Impact on Crypto Banking

Recent disclosures indicate that Operation Chokepoint 2.0 was indeed a real initiative. This coordinated effort from the federal government aimed at restricting banking services to cryptocurrency companies followed the downfall of three significant crypto-friendly banks in March 2023—Signature, Silvergate, and Silicon Valley Bank.

The crypto community, spearheaded by VC-commentator Nic Carter, had long suspected such a scheme was in place. However, tangible evidence had been scarce until now.

On Friday, internal communications from the FDIC were made public thanks to a lawsuit from Coinbase, which pushed for transparency concerning these communications. In a report, Jesse Hamilton noted that these documents revealed the FDIC's directives to banks to halt any engagement with the crypto sector until further notice.

In one of the letters reviewed, the FDIC advised, "We respectfully ask that you pause all crypto asset-related activity. The FDIC will inform all banks under its supervision at a later date regarding their engagement in crypto activity."

Despite previous denials from the FDIC about pressuring banks against crypto-related services, these letters suggest otherwise. Grewal, a legal representative from Coinbase, stated, "The letters illustrate that this was no mere conspiracy theory; this was a structured attempt by the FDIC to deny banking services to a legitimate industry."

This issue has gained traction recently, especially after Marc Andreessen highlighted the concerns regarding Operation Chokepoint 2.0 during a recent podcast. The implications of these revelations extend beyond crypto, raising serious questions about the rights to financial services in America, a necessity that shouldn't be subjected to political whims.