E110: Crypto Debanking: What Really Happened | Patrick McKenzie

Today on Upstream, we’re releasing an interview between Erik Torenberg and Patrick McKenzie. Patrick discusses Operation Chokepoint, the origins of debanking, and how it affects the crypto industry, offering detailed insights into the political motivations, regulatory complexities, and practical ramifications of such banking decisions.

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LINKS:

Debanking (and Debunking?) https://www.bitsaboutmoney.com/archive/debanking-and-debunking/  

a16z's Debanking explainer: https://a16zcrypto.com/posts/article/debanking-explained/ 

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X / TWITTER:

@patio11

@eriktorenberg

@turpentinemedia

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HIGHLIGHTS FROM THE EPISODE:

• Marc Andreessen's Joe Rogan appearance discussing politically motivated debanking sparked this investigation into the topic.
• "Debanking" is revealed as an advocacy term covering account terminations, denials, and actions against crypto-friendly banks.
• Operation Chokepoint was an Obama-era DOJ program using banking laws to pressure banks away from servicing certain industries.
• "Operation Chokepoint 2.0" is not an actual program but a term coined by crypto advocates to describe recent crypto banking challenges.
• Silvergate Bank, a major crypto-friendly bank, wound down after the FTX collapse amid allegations of compliance failures and fraud involvement.
• The tech industry connects debanking to broader government overreach concerns, including social media content moderation.
• Canada's Freedom Convoy response represents a clear example of government-directed financial targeting, unlike the claimed US situation.
• The crypto industry pushes the debanking narrative as part of a specific policy agenda.