Crypto Leaders Claim U.S. Targets Blockchain Firms in 'Operation Chokepoint 2.0'

Over 30 cryptocurrency and tech founders in the U.S. allege that the government is pressuring banks to cut ties with blockchain and crypto-related businesses. This so-called “Operation Chokepoint 2.0” is believed to be a continuation of a similar initiative from the Obama administration that targeted industries deemed high-risk.

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The issue gained attention after Marc Andreessen, co-founder of Andreessen Horowitz, shared his concerns on The Joe Rogan Experience podcast. Andreessen claimed that in the past four years, more than 30 tech entrepreneurs were denied banking services for political reasons. He compared this to the original “Operation Chokepoint,” which restricted financial access for industries like payday lending and firearms. According to Andreessen, the latest version under the Biden administration specifically targets crypto businesses.

High-Profile Reactions

Tesla CEO Elon Musk echoed these claims on social media platform X, asking if people were aware of the financial exclusion targeting founders. Coinbase CEO Brian Armstrong joined the conversation, calling the alleged actions "un-American" and accusing the Biden administration of suppressing the crypto industry. Armstrong also pointed fingers at figures like Senator Elizabeth Warren and SEC Chair Gary Gensler for allegedly driving these efforts.

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Sam Kazemian, founder of Frax Finance, shared his personal experience of “debanking.” He claimed that in December 2022, JPMorgan Chase closed his accounts, citing instructions to sever ties with clients whose wealth came from cryptocurrency. Kazemian suggested this was part of a larger agenda led by JPMorgan CEO Jamie Dimon.

Impact of Bank Closures

The situation worsened in 2023 following the collapse of several crypto-friendly banks, including Silicon Valley Bank, Silvergate Bank, and Signature Bank. These events fueled speculation that a coordinated effort was underway to isolate the crypto sector. Venture capitalist Nic Carter described this as clear evidence of “Operation Chokepoint 2.0.”

Other entrepreneurs, like Gab founder Andrew Torba, have faced similar challenges. Torba alleged that several banks shut down his accounts after facing pressure from federal regulators, who reportedly used threats of audits and other compliance measures to force these actions.

Calls for Transparency

Caitlin Long, CEO of Custodia Bank, shared her struggles with similar financial restrictions. Her company was forced to sue the Federal Reserve to address these issues. As more industry leaders speak out, there is growing demand for transparency and accountability from both the government and financial institutions. Many are urging an end to what they perceive as politically motivated efforts to weaken the blockchain and cryptocurrency industries.

Also Read: Top 5 Cryptocurrencies to Buy as Market Soars Following Trump Election Victory