Choke Point 2.0: Biden, Democrats, the Fed and the DOJ Are Cracking Down on Cryptocurrency
Choke Point was a 2013 Obama policy that cut off banking from businesses that the administration did not like, such as the firearms industry, legal marijuana and the loan industry.
Choke Point was a 2013 Obama policy that cut off banking from businesses that the administration did not like, such as the firearms industry, legal marijuana and the loan industry. The Choke Point model was used by several banks against the Dakota Access Pipeline in 2017. The policy was enacted by applying pressure via the banking sector, rather than passing laws. Trump ended it in 2017 until Democrats regained power.
Choke Point 2.0 targets cryptocurrency (crypto) as regulators are cracking down on banks taking deposits from crypto clients, issuing stablecoins, engaging in crypto custody, or seeking to hold crypto as principal. The driving force behind the crackdown is the Biden administration, certain members of Congress, the Fed, the FDIC, the OCC, and the DoJ.
The US is now influencing international organizations like the Financial Action Task Force (FATF) that plans to kill cryptocurrency by labeling anything related as “high risk”. Any countries that don’t go along with FATF are cut off from financial services. But cryptos may attract other countries. Cryptocurrencies may trade against CBDCs in the future, which could allow those in power to take control of the industry.
From Pirate Wires:
Operation Choke Point 2.0 Is Underway, And Crypto Is In Its Crosshairs
What began as a trickle is now a flood: the US government is using the banking sector to organize a sophisticated, widespread crackdown against the crypto industry. And the administration’s efforts are no secret: they’re expressed plainly in memos, regulatory guidance, and blog posts. However, the breadth of this plan — spanning virtually every financial regulator — as well as its highly coordinated nature, has even the most steely-eyed crypto veterans nervous that 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. Let’s dig in.