The term “operating cokepoint” is first used for reference program Initiated by the Barack Obama administration, U.S. officials are said to have put pressure on banks to disconnect from pornography, payday loans and other adverse industries. This time the argument says that cryptocurrencies are in the crosshair.
Specifically, the theory is that the Federal Reserve, the Federal Deposit Insurance Company (FDIC) and the Office of the Monetary Auditor General (OCC), are responsible for the stable institutions of the U.S. banking system, and the solid bank denial of service to the crypto industry. They hit the ground by posting informal guidance Public consultation process Require formal policies, Encrypted data has been claimed.
exist Joint Statement Release in January 2023 The spectacular crash of crypto-swap FTX As well as various other cryptocurrencies businesses, the three institutions claim that cryptocurrencies are “significant risks” to banks. “It is important that the risks associated with crypto asset management departments must not be mitigated or controlled and should not be moved to the banking system,” the agency wrote the business. In other statements issued at that time, both Banking Regulatory Authority and White House Banks are further warned to limit their exposure to cryptocurrencies.
The currency proxy calculator Rodney Hood said in a statement to Wired: “The OCC has not instructed banks to open, close or maintain personal accounts. The OCC does not recommend or encourage banks, either Wholesale termination of participating customer account categories.”
The Fed declined to comment, but pointed out that its chairman Jerome Powell was in January Press Conference: “As long as they understand and can manage the risks, banks can serve crypto customers completely,” he said at the time. “We certainly don’t want to take actions that would cause banks to terminate fully legal customers.”
The FDIC did not respond to a request for comment.
Previously, crypto entrepreneurs have been reluctant to open up with their offline stories, partly to avoid stigmatization, and partly to fears that it will harm their new banking relationships, Nick Neuman, CEO of Crypto Custody Firm Casa. In 2021, Silicon Valley Bank told CASA that it would close the company’s bank account that it had had for three years. Neuman’s co-founder wanted to tweet, but he objected.
“You’re worried that if you talk about this openly and you’re going to have a bank relationship with the teeth that you’re gritting your teeth in your teeth that have barely gotten, then they’re going to burst you too. You’re back to the zero square,” Neumann said. “You’re in this mode and hopefully no one on the bank risk committee realizes that you’re a cryptocurrency business. You want to leave the radar behind.”
Donald Trump now takes over the White House Swear on the campaign trail Members of the industry are brave enough to “close Chokepoint 2.0 Operation Now.” After the problem Venture capitalist Marc Andreessen mentioned On the December Joe Rogan podcast, they are filled with X’s war stories about dealing with banks. “The trend has changed and the new administration is clearly coming in and changing things,” Neumann said.
