Biden's SEC and CFTC Ban Crypto Founders

The Biden-era Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have allegedly instructed several DeFi founders to never work in crypto again, according to a crypto venture capitalist (VC). Joey Krug, a partner at Founders Fund, revealed this during the ETH Denver conference, stating that the government had approached DeFi founders and forced them to sign settlements that included a clause preventing them from working in the crypto industry again.

Krug also mentioned that the founders were required to sign a non-disparagement clause, which only allowed them to discuss the issue with Congress. Additionally, he claimed that authorities threatened the founders with jail sentences, despite none of them breaking the law. The VC partner recommended that Congress ask the victims to testify and fire any agency officers involved in the allegations.

This revelation comes amidst ongoing investigations into crypto debanking, also known as 'Operation ChokePoint 2.0,' which restricted crypto firms from accessing banking services during Biden's reign. While Congress is currently probing the extent of the debanking, the media has not reported on firms that were outrightly banned from the sector.

Krug expressed hope for the Trump SEC's different approach to the crypto industry, highlighting the new agency's regulatory rollbacks on various enforcement actions against crypto firms like Coinbase, Gemini, and Uniswap.