"FDIC's Crypto Crackdown: Lawmakers Probe 'Choke Point 2.0'

The Committee on Financial Services has scheduled a hearing to probe the negative effects of Operation Choke Point 2.0, which has been accused of targeting the crypto industry by limiting its banking access. The hearing will take place on [insert date] and will be an opportunity for lawmakers to question witnesses and gather information about the alleged regulatory barriers faced by the crypto industry.

The FDIC, which insures deposits and supervises banks, has been at the center of the controversy surrounding Operation Choke Point 2.0. The agency has been accused of pressuring banks to limit their involvement with crypto-related activities, including issuing pause letters to halt crypto services. The FDIC has also been criticized for issuing guidance that has made it difficult for banks to engage with the crypto industry.

Acting FDIC Chair Travis Hill has acknowledged the agency's past approach to crypto assets and has signaled a willingness to reevaluate its supervisory approach. Hill has also criticized the FDIC's past approach to crypto assets and has sought to improve transparency by releasing documents related to the agency's supervision of banks that engaged in, or sought to engage in, crypto-related activities.

The FDIC has released a large batch of documents, including 175 documents related to its supervision of banks that engaged in, or sought to engage in, crypto-related activities. These documents show regulators resisting, with banks experiencing delays, additional information requests, and orders to halt or limit their blockchain and crypto operations. The documents also reveal the FDIC's willingness to enforce measures that critics consider regulatory overreach.

The document release coincides with Scott Bessent's appointment to the FDIC board, though his role in the disclosure remains unclear. The release follows recommendations from the FDIC Office of Inspector General's report on managing crypto risks and appears part of a broader strategy to limit crypto's presence in traditional finance.

President Trump has proposed a sweeping transformation of the federal government with the help of Elon Musk and D.O.G.E. If he does abolish the agency in the future, it could mean even lower enforcement for the crypto industry. However, these developments are still questionable, and federal investigations will continue to assess the depth of Operation Choke Point 2.0.

In the meantime, Coinbase has requested US banking regulators to permit banks to offer crypto custody and trading services, amidst an investigation into regulatory barriers. The crypto industry continues to face challenges in accessing banking services, and the upcoming