White House Spox Says Operation Choke Point 2.0 Is Categorically False
- Wieczner reached out to five regulatory agencies, where she received mixed responses.
- A White House spokesperson said the allegations were false, while others pointed out the Fed’s statements.
New York Magazine writer Jen Wieczner recently reached out to a few crypto and government officials to ask about Operation Choke Point 2.0. She stated that she found troubling cases and sources that stated that this is more than a conspiracy theory.
Wieczner stated that she reached out to five regulatory agencies, including the OCC, Fed, FDIC, NYDFS, and SEC, to inquire about Operation Choke Point 2.0. She stated that a White House spokesperson said that the allegations were categorically false. However, another administration official stated that much of it is a coincidence in timing.
One primary thing that she pointed out was the joint statement by the Fed, FDIC, and OCC in January. She cited the statement that mentioned crypto activities are “highly likely to be inconsistent with safe and sound banking practices.”
Wieczner spoke about the seriousness of the statement and said:
That statement alone — which crypto fiercely contests — may give regulators enough cover to box out crypto from much of the banking system without any other “secret” or “clandestine” Choke Point operations.
Operation Choke Point 2.0 is alleged to be a secret mission by the Biden administration. The operation is aimed at bringing down the cryptocurrency industry in the US. The alleged operation seems to be quite active, which is evident from the actions of regulators, including the SEC and others.
This targeted action by the US regulators comes at a time when other global nations are trying to embrace the cryptocurrency industry.