Exploring the Impact of Regulatory Actions on the Crypto Industry
The Subcommittee on Oversight and Investigations of the Committee on Financial Services has announced a hearing scheduled for Feb. 6 titled “Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs.”
Key Objectives of the Hearing:
- Assess the impact of regulatory actions on crypto firms and employees
- Examine the role of financial regulators in limiting banking access to the digital asset ecosystem
- Identify policy measures necessary to address concerns raised by industry participants
This hearing aims to provide insight into how regulatory policies are shaping the financial landscape for digital assets while evaluating the need for potential legislative action to address issues related to banking access and regulatory overreach.
Witnesses Scheduled to Testify:
- Paul Grewal, Chief Legal Officer of Coinbase
- Fred Thiel, CEO of Marathon Digital
In a social media post, Paul Grewal expressed his pride in shedding light on the unfair treatment of the industry and thanked the Financial Services GOP and the US House Committee on Financial Services for their attention to the matter.
Operation Chokepoint 2.0: A Closer Look
The hearing will delve into the alleged harmful effects of Operation Chokepoint 2.0, a term used to describe regulatory actions under the Biden administration targeting crypto firms’ access to banking services.
Critics argue that Operation Chokepoint originated during the Obama administration, with the Department of Justice and regulatory agencies pressuring banks to cease services to specific industries.
The Subcommittee suggests that the Biden Administration has continued similar practices, potentially limiting financial services access for companies and individuals in the crypto sector.
Recently, the House Committee on Oversight and Government Reform issued a formal letter to various crypto entities, including Coinbase, Uniswap Labs, and Blockchain Association, requesting evidence of instances where banking services were denied to crypto companies.