Crypto Chaos: How Biden’s “Operation Choke Point 2.0” Left Crypto High and Dry!

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Hold onto your wallets, folks! House Republicans just dropped a bombshell report, spanning 51 pages, about how the Biden Administration allegedly used its almighty “supervisory pressure” to pull the plug on crypto firms. That’s right, it’s the not-so secret “Operation Choke Point 2.0” – sending crypto companies straight to the digital doghouse! 🕵️‍♂️💣

In this explosive dossier, they reveal juicy internal “pause letters” and policy docs that show how the Trump Administration reversed these policies. Talk about a plot twist! 🍿

Pause Letters and Supervisory Pressure: The “Operation Choke Point 2.0” Saga Continues!

The House Financial Services Committee isn’t holding back, presenting evidence that at least 30 digital asset entities were left high and dry between 2022 and 2024 – talk about getting ghosted by your bank. 🏦💔

These “pause letters” are like the crypto equivalent of a bad breakup text. The FDIC sent them to 24 banks, demanding they put the brakes on crypto services. The Federal Reserve got in on the action too, sending out guidance that made banks beg for permission before even thinking about digital assets. Can someone say overbearing? 🤦‍♂️

Then, in February 2025, the FDIC “pause letters” went public, causing a ripple effect across the crypto world. The letters made it nearly impossible for financial institutions to get in the crypto game, with regulators stopping reviews and demanding more paperwork than your tax advisor on a caffeine binge. 📄💼

The Crypto Carnage: From Coinbase to Tiny Startups!

Big names in the industry didn’t escape the wrath. Coinbase, Marathon Digital Holdings, and the founders of Uniswap, Ripple, and Gemini found themselves in the crypto crosshairs. Talk about a digital disaster. 😱

But wait, there’s more! Anchorage Digital, an institutional crypto platform, had to lay off 20% of its workforce after losing banking access in 2023. Ouch. 🧑‍💼💸

Regulators pulled out every trick in the book, including supervisory letters like SR 22-6, interpretive guidance like IL 1179, and the SEC’s Staff Accounting Bulletin 121. This was no rulemaking party – just a silent crypto chokehold. 🧩

Crypto execs were left scrambling when their accounts were shut down with barely a 24-72 hours notice. It was like getting evicted without even a warning. And guess what? Banks didn’t even bother with an explanation. Talk about bad manners! 👎

Trump’s Big Red Button: Reversals on Biden’s Crypto Nightmare

Fast forward to 2025, and the Trump Administration is out here playing cleanup, undoing every last piece of Biden’s crypto chaos. They’ve rescinded SAB 121, yanked those pesky Federal Reserve supervisory letters, and booted “reputational risk” from the banking playbook. 🎬🛑

In a move that has the crypto world saying “finally,” the administration signed the GENIUS Act in July 2025, creating the first-ever federal regulatory framework for payment stablecoins. Yep, stablecoins. Talk about taking crypto from the wild west to the big leagues. 🏆

And because they didn’t stop there, they set up a Presidential Working Group on Digital Asset Markets, led by none other than the White House’s AI and Crypto Czar (yes, that’s a thing), David Sacks. 📡

What’s Next: The Legislative Action That Might Actually Stick

The report is now pushing for the CLARITY Act (H.R. 3633) – and hey, it’s already passed the House with a 294-136 vote in July. Now, it’s chilling in the Senate, waiting for some action. 📜

Other proposals include banning the use of “reputational risk” in bank supervision and reforming the CAMELS rating system (yes, you read that right, CAMELS – no, not the desert kind!). 🦙

Now, let’s not forget that this report is all from a partisan Republican perspective – but hey, they’re backing it up with some serious documentary evidence showing how the regulatory tools were aimed at the crypto industry. 🎥

Final Thoughts (because who doesn’t love a plot twist?):

  • House Republicans have made it clear: 30+ crypto entities were debanked under Biden’s watch, thanks to those FDIC “pause letters” and supervisory pressure. 🚫
  • The Trump Administration has gone full throttle to reverse Biden-era crypto policies, including axing SAB 121 and eliminating “reputational risk” from the banking system. 🏁

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2025-12-02 01:06