US Congress Demands Answers Over Operation Chokepoint 2.0

The House Oversight Committee launches an investigation into claims of systematic crypto debanking, requesting evidence from industry leaders amid regulatory shift.

Godfrey Benjamin By Godfrey Benjamin Marco T. Lanz Edited by Marco T. Lanz Updated 3 mins read
US Congress Demands Answers Over Operation Chokepoint 2.0

Key Notes

  • Rep James Comer is investigating the claims of Operation Chokepoint 2.0.
  • The Rep has sent letters to Andreessen Horowitz, Coinbase, and Uniswap for evidence.
  • Donald Trump’s administration is already stirring a shift in the crypto approach.

The United States Congress is finally looking into the case put forward by crypto exchanges regarding Operation Chokepoint 2.0. Rep. James Comer (R-KY), Chair of the House Oversight Committee, said the inquiry is already underway. He informed numerous industry stakeholders of this new development on January 24.

Biden Officials Denies Involvement in Operation Chokepoint 2.0

US Lawmakers are now trying to confirm whether regulators secretly “debanked” leading crypto firms during the Joe Biden administration. Comer highlighted the situation in his letter to Andreessen Horowitz (a16z) co-founder Marc Andreessen, Coinbase CEO Brian Armstrong, and Uniswap founder Hayden Adams, among others.

“The Committee… is investigating improper debanking of individuals and entities based on political viewpoints or involvement in certain industries such as cryptocurrency and blockchain.”

Some other crypto firms received the letter from the House of Representatives official. Many of these entities agree that Biden’s administration set out to crack down on the crypto sector.

Notably, several past administration executives have denied involvement in such a plot.

The former US Securities and Exchange Commission (SEC) chairman Gary Gensler refuted the claims. While Congress investigated the matter, the American cryptocurrency exchange Coinbase dug out correspondence between the Federal Deposit Insurance Corporation (FDIC) and some of these banks.

Witnesses to FDIC De-banking Initiative

Despite initial redactions, the “pause letters,” as these documents refer to, show the regulator’s instructions. These letters show that banks were mandated to sever all ties with crypto companies, including withdrawing their access to banking services.

To give credence to the content of the pause letters, Andreessen Horowitz confirmed the situation when he appeared on Joe Rogan’s podcast.

He admitted to knowing crypto-friendly tech guys who lost access to banking services when Biden was President of the United States. Donald Trump’s wife, Melania Trump, Funnily mentioned that she and her son, Barron, were also debanked during this time.

Congress has asked the a16z co-founder and any other entity with evidence of the debanking initiative to come forward.

Explicitly, the bloc seeks to ascertain whether the debanking practice was an instruction from the financial institutions themselves. Alternatively, it could be the case of implicit or explicit pressure from government regulators.

Donald Trump Fuels Changes With SEC

This event underscores the crypto landscape pivot since Donald Trump came into power. In his four days in the White House, he has appended his signature to policies favoring the crypto ecosystem.

He signed an executive order to establish the “Presidential Working Group on Digital Asset Markets,” marking a major shift in the approach to digital assets.

Under Trump’s administration, Mark Uyeda was appointed as the Acting SEC Chair. He immediately launched a crypto task force to establish a clear regulatory framework for the industry.

Led by Commissioner Hester Peirce, the task force will conduct itself within the statutory framework provided by the US Congress.

Regarding collaboration, the crypto task force will work closely with other federal departments and agencies, especially the Commodity Futures Trading Commission (CFTC), to ensure the Web3 industry has a clear regulatory framework.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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