The Breakdown Operation Chokepoint 2.0 Finally Has Smoking Guns
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Jan 7, 2025 The legal drama between Coinbase and the FDIC reveals the extensive influence of Operation Chokepoint 2.0 over banking practices. Recent FDIC letters aim to stifle crypto activities, threatening retail access and innovation. Community banks face regulatory hurdles that limit their ability to engage with cryptocurrencies, despite their potential as innovators. The discussion highlights how U.S. regulations have hindered fintech, exemplified by stalled projects like USDF. Overall, concerns over government power and its chilling effects on crypto innovation take center stage.
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Targeted Crypto Activities
- The FDIC targeted banks for various crypto activities.
- These included Bitcoin transactions, stablecoin reserves, and even NFT purchases.
Policy Shift and Vague Letters
- Some targeted banks had already launched crypto services with FDIC knowledge, indicating a policy shift.
- This was done through vague "pause letters" rather than formal rulemaking, making legal challenges difficult.
Suppressed Crypto Adoption
- Banks were ready to adopt crypto in 2022 but were actively prevented.
- This disproves the claim that banks had no interest in crypto.