Key Takeaways
- The GOP House has initiated the ChokePoint 2.0 investigation, focusing on issues related to debanking in the crypto sector and accusations of regulatory overreach.
- Prominent technology leaders have been asked to share insights regarding potential regulatory pressures they’ve faced from federal authorities.
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The GOP-led House Oversight Committee is investigating claims of illegal debanking practices against cryptocurrency firms and technology startups. Named ChokePoint 2.0, the initiative seeks to address allegations that the Biden administration has weaponized financial exclusion against political adversaries and certain disfavored industries.
The investigation examines accusations regarding debanking practices that target individuals and organizations based on their political views or connections to the crypto and blockchain sectors. Under Rep. James Comer’s guidance, the committee has reached out to key players in the crypto industry, including exchanges and financial institutions, to ascertain if they have experienced regulatory coercion or unlawful denial of banking access.
Letters have been sent to notable figures such as Hayden Adams from Uniswap Labs, Marc Andreessen of Andreessen Horowitz, Brian Armstrong, CEO of Coinbase, David Marcus, CEO of Lightspark, David Ripley, CEO of Payward, and Kristin Smith, CEO of the Blockchain Association.
This inquiry aims to uncover any undue influence from federal agencies on banks to limit services to legitimate crypto businesses, emphasizing the need for transparency in communications between these agencies and financial institutions.
Marc Andreessen claimed on The Joe Rogan Experience that more than 30 tech founders have faced banking service loss in recent years without justifiable reasons, suggesting that the Biden administration is behind what he refers to as “Operation ChokePoint 2.0,” in reference to Operation ChokePoint from the Obama era, which targeted specific industries like firearms and cannabis.
Support for the committee’s stance comes from Coinbase co-founder Brian Armstrong, who corroborated the claims about 30 founders being debanked, thereby substantiating the existence of “Operation ChokePoint 2.0.”
Armstrong also asserted that former SEC Chair Gary Gensler has acted unlawfully in attempts to undermine the crypto industry. Furthermore, Coinbase’s Chief Legal Officer, Paul Grewal, reported that financial regulators have leveraged various strategies to destabilize the digital asset sphere, highlighting the coordinated nature of these debanking actions.
The Blockchain Association confirmed receipt of the committee’s correspondence and has implemented an anonymous hotline for those impacted by debanking practices to come forward and share their experiences.
