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CoinDesk Consensus

Caitlin Long, founder of crypto-friendly Custodia Bank, said if regulators continue to hold back bitcoin (BTC), they will be “whack-a-mole” in trouble.

war on crypto

Recently, a series of regulatory enforcement actions have raised suspicions of a coordinated attack on the US cryptocurrency industry. Most recently, the SEC sent him a Wells Notice to Coinbase on March 22nd.

bitcoin bull Anthony Pompliano described “Operation Chokepoint 2.0” as a program to bypass the law and democratic due process to enforce political views. He admitted that there had been no formal confirmation of such a program and did not expect its existence to be acknowledged by the authorities.

“It refers to Obama-era programs that used the banking system as a way of essentially enforcing political views and laws without going through the legislative process.”

former Federal Deposit Insurance Corporation (FDIC) Chairman, William Isaac — who served from 1981 to 1985 — said Operation Chokepoint (1.0) was not about combating fraud or protecting consumers. Instead, it was a proxy attack on an industry that was “deemed undesirable”.

“Targeting entire industries deemed undesirable by putting regulatory pressure on the banks they serve.”

Partner at Castle Island Ventures, Nick Carter, first connected the dots. He said “New Operation Choke Point Type Operations‘ has been in force since the beginning of 2023, adding that it is a deliberate attempt to stifle the crypto industry.

“Undervaluing the industry and cutting off connections to the banking system is a well-coordinated effort that is paying off.

Custodia Denied

upon January 27, Custodia Bank’s application to join the Federal Reserve was denied. Later in the day, the Kansas City Fed rejected Custodia’s master account application.

a master account It enables access to the Fed’s wholesale payment network without the need for a bank to act as an intermediary.

In a conversation with Pompliano, the custodians were told to withdraw their applications before Long was rejected or they would “not be voted on”. Similarly, two rejections in quick succession. The fact that it happened is evidence of coordination, Long said.

Moreover, she has since made it clear that Operation Chokepoint 2.0 is real, pointing out that the crypto industry has a “one-sided” enforcement action.

“We have seen it in action against Paxos, action against stablecoin issuers, and action against Kraken between the IRS and SEC. Most crypto exchanges received Wells notices in early February.

Regulators Can’t Stop Bitcoin

Bitcoin’s Response to “Fix This” length Despite the damage done, the recent surge in BTC price shows that the authorities are powerless to shut it down.

She said regulators and those pushing the anti-crypto agenda refuse to accept that this is going out of control. I will try

Fiat currency and cryptocurrencies coexist, but regulators are in trouble in the long run by forcing U.S. crypto companies to go abroad, Long said.

“Sadly, by pushing everything offshore, they’re doing a whack-a-mole and, frankly, perhaps through a correspondent bank, a revelation they didn’t know existed. prize.”

By Jules

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