- Biden and his administration have been accused of secretly trying to ban crypto through an Obama-era initiative known as Operation Choke Point 2.0.
- The plan is designed to cut off the crypto industry from banking services.
- This could lead to exchanges being shut off from the banking system, which would give other countries a huge competitive advantage.
Biden’s Crypto Hypocrisy
Biden and his constituents have been accused of collecting money from men like Sam Bankman-Fried and garnered quick ties to fraudulent companies like FTX during their campaign donations while later swearing to impose tight regulations on crypto when the firm collapsed without offering to pay back any funds. Nic Carter – a partner at Castle Island Ventures – noted that this could be reminiscent of a little-known Obama-era program designed to ringfence the crypto industry and cut it off from banking services. This decision was further demonstrated by the Fed’s recent decision to prevent Custodia – a crypto bank – from having a seat at its table. Additionally, Protego and Paxos – two more monetary service companies in the crypto space – may not receive permission either.
Long Term Effects
Marcus Sotiriou – a market analyst at digital asset broker Global Block – said that if this initiative were successful, it would be detrimental for the United States because it would prevent them from getting ahead technology-wise, while giving their enemies huge advantages. He noted that this would result in “the rest of the world getting ahead in the important crypto and blockchain technology revolution”.
What Is Operation Choke Point?Operation Choke Point is an Obama-era initiative designed by Biden and his associates as an attempt to cut off any „undesirable“ industries from banking services. This includes cryptocurrency, which is presently unregulated by federal government standards. It was initially created in order for banks and other financial institutions to identify businesses with high risk factors like money laundering or fraud, so they could then deny those businesses access or stop providing services altogether.
Why Is Banning Crypto Bad?If Biden and his administration are successful in banning crypto through Operation Choke Point 2.0., exchanges will be shut off completely from being able to use banking services, stablecoins won’t be able to manage flows in or out of cryptocurrency markets, and businesses might end up unbanked entirely as well. This would give other countries who are still open minded about cryptocurrency regulation huge competitive advantages over the United States while they fall behind technologically speaking within the blockchain sector.
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It is clear that Biden’s administration has been trying hard to limit what people can do with cryptocurrency within its borders through different initiatives such as Operation Choke Point 2.0., which is proving controversial amongst some members of the public due its potential long term effects on both US competitiveness regarding blockchain technology advancement, as well as individual freedom when it comes to using cryptocurrencies for financial transactions