The Impact of US Banks on Crypto Stakeholders
Recent revelations by Coinbase CEO Brian Armstrong have shed light on the discriminatory practices of US banks towards individuals involved in the crypto industry. Armstrong’s ongoing efforts to obtain documentation through the Freedom of Information Act (FOIA) have uncovered a troubling trend of account closures targeting crypto stakeholders.
Ethical Concerns and Political Influence
Armstrong has condemned these actions as unethical and contrary to American values. He has implicated figures like Senator Elizabeth Warren and outgoing SEC Chair Gary Gensler for fueling anti-crypto sentiment, which may have influenced the decisions of these banks.
“My guess is we’ll find Elizabeth Warren’s fingerprints all over it (Biden himself was probably unaware).”
Armstrong has warned that these actions could have contributed to recent political losses for the Democratic Party. He has called for the party to distance itself from figures like Senator Warren, whom he views as a liability to their future electoral prospects.
“Warren and Gensler tried to unlawfully kill our entire industry, and it was a major factor in the Dems losing the election.”
Financial Exclusion of Crypto Innovators
These discriminatory practices extend beyond Coinbase to other crypto stakeholders who have also faced account closures and denials of financial services.
Roman Storm, the developer behind the Tornado Cash project, revealed his repeated debanking experiences due to his association with the sanctioned crypto mixer. Similarly, Sam Kazemian, the founder of Frax Finance, disclosed JPMorgan Chase’s decision to close accounts of individuals whose primary income is derived from crypto.
“I had a close relationship with my banker so I assume 99% of people wouldn’t even get that kind of transparency/explanation. Wanted to add my own name to the debanked OCP list. It’s real. It happened.”
Operation Choke Point 2.0: A Coordinated Effort
Venture capitalist Marc Andreessen has drawn attention to the broader implications of these account closures, likening them to the controversial “Operation Choke Point.” He claims that the Biden administration has expanded its scope to target crypto and tech startups, leading to the debanking of at least 30 founders without warning or recourse.
The crypto community has dubbed this phenomenon “Operation Choke Point 2.0,” highlighting what they perceive as coordinated efforts by US regulators to undermine the sector.
