Operation Chokepoint 2.0: A Long-Standing Threat to Crypto and Tech Firms
The recent Joe Rogan interview with Marc Andreessen has shed new light on the government’s alleged crackdown on crypto and tech firms through Operation Chokepoint 2.0. However, this is not a new phenomenon, and its roots date back to the Obama administration. In this analysis, we will delve into the history of debanking, its evolution, and its impact on the crypto and tech industries.
A Brief History of Debanking
Debanking, a process where a bank closes a customer’s accounts, has been used as a tool to target high-risk or controversial businesses. The first wave of debanking, under the title Operation Chokepoint, began during the Obama administration in 2011. The goal was to restrict banking access to industries such as gun shops and marijuana dispensaries.
Beyond Tech: Debanking Targets a Wide Range of Individuals and Businesses
While the crypto industry has been aware of debanking for years, it’s essential to note that this phenomenon is not limited to tech firms. Various individuals and businesses have faced debanking, including:
- Julian Assange, the WikiLeaks founder, was debanked in 2010 by the Swiss banking arm of the Swiss post office, PostFinance.
- Lee Taylor, the CFO of OnlyFans, had his account frozen in June 2024 due to a compliance review triggered by the name of the company paying his wages.
- Melania Trump, the former first lady, claimed in her memoir that she was dropped by her bank and her son was blocked from opening an account due to political motivations.
- Mark Carnegie, an investor, has been debanked several times by multiple banks in Australia.
- Caitlin Long, the CEO of Custodia Bank, has been debanked repeatedly and is currently involved in a pending lawsuit against the government.
Banks Being Debanked: A Growing Trend
Debanking is not limited to individual customers; banks themselves are also being targeted. Caitlin Long, the CEO of Custodia Bank, has been debanked repeatedly, and the bank is currently involved in a lawsuit against the government.
The Government’s Response: Denial and Inaction
Despite the growing trend of debanking, the government has been reluctant to acknowledge a concerted effort to limit banking access for crypto firms. In 2023, outgoing Securities and Exchange Commission Chair Gary Gensler denied any knowledge of an Operation Chokepoint 2.0.
Conclusion
Operation Chokepoint 2.0 is not a new phenomenon, and its roots date back to the Obama administration. Debanking has been used as a tool to target high-risk or controversial businesses and individuals. The crypto industry has been aware of debanking for years, and it’s essential to note that this phenomenon is not limited to tech firms. The government’s response has been denial and inaction, which will only stifle competition and innovation in the financial services sector.
Predictions
Based on the analysis, we predict that debanking will continue to be a growing trend, targeting not only crypto and tech firms but also individual customers and businesses. The government’s inaction and denial will only exacerbate the problem, leading to increased competition and innovation in the financial services sector. As a result, we predict that more businesses and individuals will be debanked, and the crypto industry will face significant challenges in accessing banking services.
Recommendations
To mitigate the impact of debanking, businesses and individuals should:
- Diversify their banking relationships to minimize the risk of debanking.
- Monitor their accounts closely for any suspicious activity.
- Seek alternative banking solutions, such as digital banks or payment processors.
- Engage in advocacy efforts to raise awareness about debanking and push for regulatory change.
