Crypto Targeted: House Confirms Operation Choke Point 2.0

"While many of the findings - such as the Fed, FDIC, and OCC pressuring banks away from crypto through informal guidance, and the SEC's "enforce first, make rules never" approach - were previously known, the report now places them squarely in the Congressional record. The report identifies at least 30 entities that were effectively "debanked" through informal regulatory guidance and supervisory pressure. These businesses, the Committee claims, were forced out of the U.S. banking system without formal enforcement actions."

"According to the document, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) employed a range of tactics to influence bank behavior. These included "non-objection" letters, "pause" letters, and other forms of informal guidance designed to make banks hesitant to engage with crypto companies. Meanwhile, the Securities and Exchange Commission (SEC) allegedly adopted a policy of "enforce first, make rules never," using selective enforcement rather than clear regulatory frameworks to restrict digital-asset activity."

"The report highlights SAB 121, an SEC guidance that effectively blocked banks from offering custody services for crypto assets. The report paints a picture of regulators publicly denying any bias against digital assets, while privately pressuring banks to sever ties with crypto firms. The report reads that while regulators consistently denied discouraging digital-asset activity, the evidence collected by the Committee shows a pattern of private pressure and informal coercion."

House Financial Services Committee Republicans present a 50-page account alleging a systematic debanking effort by Biden-era regulators called "Operation Chokepoint 2.0." The Federal Reserve, FDIC, and OCC reportedly used non-objection and "pause" letters and other informal guidance to discourage banks from working with crypto firms. The SEC pursued an "enforce first, make rules never" approach, and SAB 121 is cited as blocking banks from offering crypto custody. At least 30 businesses are identified as effectively removed from the U.S. banking system without formal enforcement, amid claims of coercion, biased enforcement, and private pressure.

Read at Bitcoin Magazine