Unchained

Is the Government Trying to Kill Off Crypto in the US? - Ep. 476

Apr 4, 2023
Brian Quintenz, head of policy for a16z crypto, and Nic Carter, general partner at Castle Island Ventures, dive into the contentious relationship between the U.S. government and the crypto industry. They discuss Operation Choke Point 2.0 and its implications for banking access for crypto startups. The duo analyzes whether current regulatory actions from agencies like the SEC and CFTC threaten crypto's future, consider the impact of bank failures, and explore the long-term effects of these pressures on innovation in the sector.
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ANECDOTE

Operation Choke Point 2.0

  • Nick Carter explains "Operation Choke Point 2.0," targeting the crypto industry.
  • Regulators pressure banks to deny services to crypto firms, mirroring past tactics against payday lending and firearms.
INSIGHT

Bank Regulation vs. Ideology

  • Brian Quintenz emphasizes banks should manage risk, not make value judgments.
  • Bank regulation should focus on safety and soundness, not be a vehicle for ideology.
ANECDOTE

Banking Restrictions

  • Banks told a crypto company "no guns, no cannabis, no crypto" due to regulator directions.
  • Some banks file monthly "crypto-related activity reports," adding overhead.
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