RE: LeoThread 2024-12-09 09:02
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Incoming Crypto Czar Calls Out Operation Choke Point 2.0
David Sacks said regulatory efforts to debank the crypto sector should face scrutiny.
Eliminating Operation Choke Point 2.0, the covert U.S. regulatory campaign intended to cut crypto firms off from the banking sector, appears to be on the agenda of David Sacks, the incoming White House Crypto Czar.
On Dec. 6, Sacks tweeted that Operation Choke Point 2.0 “needs to be looked at,” citing the damage it has caused to the web3 and financial industries.
Sacks shared a thread published by Chris Lane, the former CTO of Silvergate Bank.
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Silvergate entered bankruptcy in early 2023 after Federal bank regulators demanded that the firm deduce its exposure to clients operating in the digital asset sector to just 15%. With crypto firms accounting for the majority of Silvergate’s business, the bank said it was forced into an untenable situation.
“Regulators came in sometime in Spring 2023 and severely limited the amount of US dollar deposits we could hold for digital asset clients… our entire business model,” Lane said. “We effectively shut down the business and focused efforts on returning capital to shareholders.”
Recently published email communications between the U.S. Federal Deposit Insurance Corporation (FDIC) and banks in 2022 corroborate Lane’s account of events. The documents were obtained through a legal challenge.
“We respectfully ask that you pause all crypto asset-related activity," the FDIC said to an unnamed financial institution. "The FDIC will notify all FDIC-supervised banks at a later date when a determination has been made on the supervisory expectations for engaging in crypto asset-related activity."
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