Operation Chokepoint 2.0: Unveiling the FDIC’s Secret Anti-Crypto Agenda
The recent revelations from the Federal Deposit Insurance Corporation (FDIC) have shed light on a long-held theory in the crypto industry: Operation Chokepoint 2.0. The existence of this secret government initiative has been a topic of debate among crypto leaders, with some claiming that the U.S. government has been actively working to strangle the industry through debanking and regulatory repression. As we delve into the latest developments, it becomes clear that the FDIC’s actions are indeed part of a larger anti-crypto agenda.
The FDIC’s Instructions to Banks
In March 2022, the FDIC instructed one bank to “pause all crypto asset-related activity,” citing the need for the agency to determine how to properly regulate these activities. This instruction was part of a series of letters sent to banks across the United States, which were published in response to a Freedom of Information Act (FOIA) request filed by Coinbase. The letters reveal that the FDIC was actively working to halt crypto-related activities, including the offering of crypto-related products and services.
Operation Chokepoint 2.0: Debunking the Conspiracy Theory
Coinbase’s chief legal officer, Paul Grewal, has argued that the FDIC’s letters constitute proof of the existence of Operation Chokepoint 2.0. While the letters do not explicitly mention debanking, it is reasonable to conclude that banks concerned about following the agency’s instructions to halt crypto-related activities might have frozen the accounts of crypto companies and executives as a precautionary measure. This is precisely what has been happening in the industry, with numerous founders and executives sharing their personal and corporate debanking stories in recent days.
The Debunking of Debunking
A source familiar with Coinbase’s thinking has pointed out that while the FDIC letters do not explicitly mention debanking, it is still possible to infer that banks might have taken proactive measures to freeze accounts to avoid getting into trouble or losing FDIC backing. This source believes that the revelations in Friday’s FDIC letters are “quite remarkable” but that there is still more evidence to be found directly tying the debanking of crypto leaders to U.S. government directives.
The Fallout: Industry Leaders Speak Out
The recent revelations have sparked a wave of reactions from the crypto industry, with numerous leaders sharing their own experiences of being debanked. Coinbase’s CEO, Brian Armstrong, and Custodia Bank’s CEO, Caitlin Long, are among those who have spoken out about being debanked. These instances could be connected to the FDIC’s push to halt crypto-related activities, and industry leaders are still seeking to uncover the smoking gun that ties the two together.
What’s Next?
The latest developments in Operation Chokepoint 2.0 have significant implications for the crypto industry. As the U.S. government continues to exert pressure on banks to halt crypto-related activities, the industry is likely to face even more challenges in the coming months. However, the revelations also underscore the importance of transparency and accountability in government actions. As the industry continues to push for clarity and relief, one thing is clear: the debate around Operation Chokepoint 2.0 is far from over.
Market Impact
The recent revelations have already had a significant impact on the crypto market, with prices experiencing a slight dip in response to the news. As the industry continues to grapple with the implications of Operation Chokepoint 2.0, market sentiment is likely to remain volatile. However, the long-term prospects for the industry remain strong, and investors should be prepared for a bumpy ride ahead.
Prediction:
In the coming months, we can expect to see:
- Increased regulatory scrutiny on the crypto industry, with a focus on anti-money laundering (AML) and know-your-customer (KYC) compliance.
- Further debanking of crypto companies and executives, as banks continue to err on the side of caution.
- Growing tensions between the U.S. government and the crypto industry, with industry leaders pushing for greater transparency and accountability.
Key Takeaways:
- Operation Chokepoint 2.0 is real, and the FDIC’s actions are part of a larger anti-crypto agenda.
- Debunking is possible, but the evidence suggests that banks have been taking proactive measures to freeze accounts.
- Industry leaders are speaking out about being debanked, and the revelations have sparked a wave of reactions.
- The market impact will be significant, with prices experiencing volatility in response to the news.
- The long-term prospects for the industry remain strong, but investors should be prepared for a bumpy ride ahead.
