Allegations of Operation Choke Point 2.0 being an effort by the Biden administration to bring down the cryptocurrency industry in the US have stirred controversy across the industry. The recent statement of a White House spokesperson denying the rumor only intensifies the tension further. Despite the official denial, reports of US regulatory bodies taking action against cryptocurrencies have surfaced and some see it as indicators that such a 'secret mission' may exist.

In January, a joint statement was issued by the FDIC, the Federal Reserve, and the OCC that stated that crypto activities are "highly likely to be inconsistent with safe and sound banking practices." This statement alone is being seen as a threat to the cryptocurrency industry, as it has the potential to discredit the sector in banking and financial services.

This type of action comes at an inappropriate time when other nations are moving to embrace and aid the crypto-industry. On the other hand, some countries are even trying to create full-fledged frameworks to nurture the industry. Contrarily, the approach of the US appears to be a step-backwards, as the US financial and regulatory authorities have been skeptical about cryptocurrencies since the very beginning.

It is still unclear what further action the US regulators can take, if any, against the industry, as such practices are known to harm the broader industry and have been met with criticism from public figures such as Maxine Waters. It is still uncertain whether Operation Choke Point 2.0 exists and what it could potentially entail, as lack of transparency means that the few clues observed by certain journalists are still to be confirmed. Until more data surfaces, the allegations remain an unanswered mystery.



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