crypto

“Operation Choke Point 2.0: Is the US planning a crackdown on the Crypto Market?

The Biden Administration plans to crack down on the crypto market. Numerous prominent figures in the crypto market warned of an Operation Choke Point-type coordinated action by multiple U.S. government agency, including the OCC and Federal Reserve and SEC along with the U.S. Congress.
Operation Choke Point 2.0
Nic Carter, a Bitcoin fundamentalist, said that there is a coordinated plan that involves almost all U.S. regulators in order to strangle the cryptocurrency industry by cutting its ties to the banking sector. Nic Carter described the event as “Operation Choke Point 2.0”.

Advertisement

He stated that “Crypto companies might become completely unbanked”, stablecoins could be stranded and unable manage crypto flows, and exchanges might be cut off from the banking system altogether.”

Advertisement

The crypto market crash and the FTX crises last year have raised concerns about crypto exchanges. The Biden Administration has now decided to disallow banks from dealing crypto firms. Regulators lambasted crypto-friendly banks like Silvergate, Signature, Metropolitan Commercial Bank.
21Shares’ director of research Eli Ndinga stated that Operation Choke Point 2.0 was something that he has been monitoring since the OCC statement regarding the risks associated with crypto-assets. He believes it could be similar to the 2021 outright ban on crypto-assets in China.
Trending Stories

Andrew revealed that OCC executives at the highest levels are leaving over this issue. He believes it is a clear violation to the Administrative Procedures Act.

@coinbase comms has contacted me to dispute the tweet’s nature and language.
**Sources and noise from all around right now
** One agency source: “Two high-ranking OCC execs are quitting because of this stuff… clear violation the Administrative Procedures Act.”
— Andrew (@AP_Abacus) February 9, 2023
The crackdown could have devastating consequences for the crypto market. It is too early to know if the U.S. Congress would support the Biden Administration’s plan. Crypto Twitter is calling for the resignation of Gary Gensler, SEC Chair, due to his harsh outlook on the crypto market.
Coinbase CEO Reveals Rumors About Staking Ban
Brian Armstrong, CEO of Coinbase, revealed today that the U.S. Securities and Exchange Commission is likely to ban crypto-staking for retail investors. Gary Gensler, Chair of the SEC, stated that staking makes virtual assets under its control. He claimed that Ethereum was now a security because of the PoS transition, according to the Howey Test.
Reports of a crackdown on crypto caused the Bitcoin price to plummet to $22.5K. Other cryptocurrencies, including Ethereum, plunged to lower levels.
Also read: Robinhood Board Approves Sam Bankman-Fried’s Stake from the US DOJ

About the author
Disclaimer

The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

Crypto Stories
View all