CoinDesk Podcast Network

COINDESK DAILY: Crypto Industry Rebukes Debanking Efforts in “Chokepoint 2.0” Hearings

Feb 7, 2025

The crypto industry stands united against U.S. regulators' debanking initiatives in recent congressional hearings. Key lawmakers propose a new stablecoin regulation draft, stirring excitement in the market. Meanwhile, Van Eck forecasts a bullish outlook for Solana, predicting its value may reach $520 by year-end. As discussions on crypto regulations heat up, the future of digital assets hangs in the balance.

03:00

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The Chokepoint 2.0 hearings reveal systemic regulatory pressures that discourage banks from engaging with the crypto industry, raising concerns about debanking practices.

Legislative measures, including a stablecoin draft bill and Utah's digital asset Treasury bill, indicate a potential shift in regulatory frameworks for cryptocurrencies.

Deep dives

Chokepoint 2.0 and Regulatory Landscape

The recent congressional hearings highlight the ongoing debanking crisis affecting the crypto industry, labeled as Chokepoint 2.0, which critics attribute to the Biden administration's influence. Coinbase's Chief Legal Officer, Paul Grewal, criticized the phenomenon of regulatory exhaustion, where agencies like the FDIC publicly state they do not oppose crypto but covertly encourage banks to distance themselves from it. This shift in narrative suggests a potential re-evaluation of federal attitudes towards digital assets, as evidenced by the scrutiny of the FDIC's communication with banks regarding crypto. Notably, Joe Lubin, CEO of ConsenSys, revealed that his firm faced debanking twice, further illustrating the challenges the sector encounters with traditional financial institutions under regulatory pressures.

Congressional Hearings Address Crypto Debanking Crisis

3min

Host Christine Lee breaks down the latest news as the crypto industry rebukes U.S. regulators’ debanking efforts.

Coinbase rebukes U.S. regulators’ debanking efforts in “Chokepoint 2.0” hearings in Washington D.C., a pair of U.S. lawmakers release a stablecoin discussion draft bill and digital asset reserve legislation advances in Utah. Plus, Van Eck predicts Solana’s SOL will hit $520 by the end of the year. CoinDesk’s Christine Lee anchors “CoinDesk Daily.”

From our sponsor:

In Chinese, belief means trust. For 10 years, Consensus has united those who believe in building a new internet where everyone has value. Join us at Consensus Hong Kong February 18 - 20, 2025 where belief becomes real. Connect with global leaders, innovators, and investors shaping the future of Web3, and experience the power of collaboration at the industry's most influential event. Register now: https://go.coindesk.com/3BeigBq

This episode was hosted by Christine Lee. “CoinDesk Daily” is produced by Christine Lee and edited by Victor Chen.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.