Congressional Hearing to Spotlight Impact of Operation Chokepoint 2.0 on Crypto Industry
By: Eva Baxter
The Subcommittee on Oversight and Investigations of the Committee on Financial Services is set to hold a crucial hearing to delve into the implications of Operation Chokepoint 2.0 on the cryptocurrency sector. Scheduled for February 6, the hearing titled "Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs" will scrutinize how regulatory measures have influenced the digital assets industry and its stakeholders.
Operation Chokepoint, originally initiated during the Obama Administration, aimed at pressuring banks to sever ties with certain industries deemed controversial. This effort has reportedly been extended under President Joe Biden's administration to encompass the cryptocurrency landscape, causing significant concern among industry participants. The hearing will specifically evaluate the extent to which regulatory actions have impaired crypto firms and their personnel, focusing on the role of financial regulators in curbing banking access for digital asset entities.
The inquiry is expected to bring much-needed transparency to how regulatory policies are currently shaping the financial landscape for crypto. High-profile witnesses including Paul Grewal, Chief Legal Officer at Coinbase, and Fred Thiel, CEO of Marathon Digital, are anticipated to provide testimony. In a social media statement, Grewal expressed his commitment to highlighting the perceived injustices faced by the crypto industry while thanking the Financial Services GOP and US House Committee for addressing this crucial issue.
Critics argue that such policies, echoed in the potential practices of Operation Chokepoint 2.0, could restrict access to financial services, thus hampering the growth and innovation within the crypto sector. On January 24, the House Committee on Oversight and Government Reform issued a letter requesting evidence from numerous cryptocurrency firms, including Coinbase, Uniswap Labs, and the Blockchain Association, regarding alleged denial of banking services under current regulatory scrutiny.
