The Biden Administration secretly plans a widespread crackdown against the crypto market. Several influential figures in the crypto market have warned of an Operation Choke Point-type action coordinated by multiple U.S. government agencies including the OCC, Federal Reserve, and SEC, along with the U.S. Congress.
Operation Choke Point 2.0
Bitcoin fundamentalist Nic Carter said there’s a highly coordinated plan, involving almost all U.S. regulators, in discussion to strangle the crypto industry by cutting its ties with the banking sector. Nic Carter has termed the action “Operation Choke Point 2.0” in his detailed description of the event.
“Crypto businesses might end up completely unbanked, stablecoins may be stranded and unable to manage flows in and out of crypto, and exchanges might be shut off from the banking system entirely,” he stressed.
The crypto market crash and the FTX crisis last year heightened scrutiny over crypto exchanges and associated firms. Now, the Biden Administration to discourage banks from dealing with crypto firms. Crypto-friendly banks such as Silvergate, Signature, and Metropolitan Commercial Bank were lambasted by regulators.
Eli Ndinga, director of research at 21Shares, stated this Operation Choke Point 2.0 has been under his radar for a few months since the release of the OCC statement on risks associated with crypto-assets. He believes it can be like the outright crypto ban in China in 2021.
Andrew revealed that two high level OCC executives are quitting over the issue. He belives it is a clear violation of the Administrative Procedures Act.
The crackdown could be devastating for the crypto market. However, it is still early to believe if the U.S. Congress will support the plan of the Biden Administration. Meanwhile, Crypto Twitter is asking SEC Chair Gary Gensler to resign over his stringent outlook against the crypto market.
Coinbase CEO Reveals Rumors of Staking Ban
Coinbase CEO Brian Armstrong today revealed that the U.S. Securities and Exchange Commission (SEC) is likely looking to ban crypto staking for retail investors. SEC Chair Gary Gensler earlier argued that staking makes virtual assets fall under its jurisdiction. He even claimed that the PoS transition made Ethereum a “security” as per the Howey Test.
Bitcoin price fell to $22.5K due to reports of a crackdown against crypto. Other cryptocurrencies including Ethereum plunged to lower levels.
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