Cryptocurrency industry leaders are outraged over the recent discovery of documents showing that the Biden administration directed banks not to engage in crypto business.
of exposed documents It is said to have confirmed allegations that crypto technology founders were being “stripped of their bank accounts” under a program colloquially known as “Operation Chokepoint 2.0.”
Chris Lane, Silver Gate Bank's former chief technology officer, accused federal regulators of contributing to the bank's collapse after the documents were released Friday.
“Silvergate has become a service for crypto clients,” Lane said. I wrote on social media. ”[Crypto was a] In approximately spring 2023, regulators intervened and significantly limited the amount of U.S. dollar deposits we could hold for our digital asset clients. Our entire business model disappeared. ”
Lane described the experience as akin to being “shot in the back.”
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Cryptocurrency industry leaders are alarmed after the discovery of new documents showing that the Biden administration has asked banks to “suspend all crypto-related activities.”
Meanwhile, President-elect Donald Trump's new artificial intelligence and cryptocurrency czar, David Sachs, said Friday that there are “too many stories about people being hurt by Operation Chokepoint 2.0,” adding, “We need to look into this. ” he said.
Last week, Paul Grewal, chief legal officer of Coinbase, which is considered one of the largest crypto exchange platforms, released a disclosure that comes alongside a long legal battle between the company and brokerages. He shared documents obtained by him and his team at the request of the law. Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC).
According to the document, the Biden administration's FDIC sent numerous letters to banks asking them to “suspend all crypto asset-related activities.”
The US Federal Deposit Insurance Corporation (FDIC) logo appears on a smartphone screen with the US flag in the background on a computer screen on December 3, 2024 in Reno, Nevada.
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“Law-abiding American businesses should be able to access banking services without government intervention,” Grewal said Friday in conjunction with the document's release. “The next administration has an opportunity to reverse far too many poor crypto policy decisions, including politically motivated regulatory decisions like Operation Chokepoint 2.0.”
Grewal vowed to continue fighting for transparency, including asking for unedited copies of documents.
Regulators are tightening the rules on cryptocurrencies and banks after tech investor Marc Andreessen said on Joe Rogan's podcast that more than 30 tech founders had their “bank accounts taken away” for political reasons. Concerns about curbing engagement with the U.S. were brought back to the spotlight during Thanksgiving week. Andreessen compared what's happening now to a similar Obama-era plan known as “Operation Chokepoint,” which sought to thwart high-risk industries such as payday lenders and gun dealers.
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Fox News Digital reached out to the FDIC and SEC for comment, but did not receive a response by press time.
