Republican members of the U.S. House Financial Services Committee have released a detailed 50-page report alleging that during the Biden administration, regulators systematically sought to exclude cryptocurrency companies from the banking system through an initiative dubbed “Operation Choke Point 2.0.” The report outlines how the Federal Reserve, FDIC, and Office of the Comptroller of the Currency (OCC) used informal directives to pressure banks to sever ties with crypto businesses. It further states that the Securities and Exchange Commission (SEC) adopted a “first enforce, then regulate” approach, imposing stringent restrictions on digital asset activities without clear rules, notably through SEC guidance SAB 121, which barred banks from providing custody services for crypto assets. While regulators publicly denied any bias against crypto, private pressures compelled banks to cut relationships with at least 30 firms, all without formal legal action. This strategy mirrors the controversial early 2010s “Operation Choke Point,” which used regulatory and reputational pressure to deny banking services to certain high-risk industries. According to the report, these actions stifled innovation in the U.S. crypto sector and forced many businesses to relocate abroad or shut down. The document also highlights cases where crypto firms, despite full legal compliance, faced difficulties maintaining bank accounts due to repeated documentation requests, sudden account closures, and vague warnings. The committee urges Congress and the administration to rescind these policies and provide clear guidance to ensure legitimate crypto businesses can access banking services without fear.
Source: bitcoinmagazine
