Trump administration-appointed crypto chief David Sacks has taken to social media to denounce Operation Choke Point 2.0, an alleged effort by U.S. regulators to restrict banking access for crypto firms.
Sacks expressed concern about the policy's negative impacts, tweeting that “too many stories” have emerged of people harmed by these measures.
Former President Donald Trump recently promised that if he were re-elected, he would “immediately terminate Operation Choke Point 2.0” to ensure a fair and inclusive banking environment for crypto companies.
Operation Choke Point 2.0 is perceived as a modern iteration of the original Operation Choke Point, which was implemented during the Obama administration. The previous program aimed to cut banking services to industries deemed high-risk, such as payday lenders and firearms dealers. Critics argue that the renewed focus on crypto firms stifles innovation and could damage the U.S. position in the global digital economy.
The debate surrounding the policy intensified after Chris Lane, a prominent crypto commentator, shared his perspective on the implications of the policy. Lane highlighted the critical role of Silvergate Bank’s SEN (Silvergate Exchange Network), a key player in facilitating cryptocurrency transactions that faced regulatory scrutiny prior to its eventual collapse.
David Sacks echoed Lane's views, claiming that regulators played a decisive role in the collapse of Silvergate. He accused authorities of “bait and switch” tactics, claiming that the bank was effectively trapped by sudden regulatory action.
*This is not investment advice.
