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- US Congressperson Byron Donalds criticizes federal regulatory agencies for their approach to cryptocurrency at the NFT.NYC 2023 conference.
- Donalds alleges a potential “Operation Choke Point 2.0” strategy aimed at limiting the crypto industry’s access to banking services.
US Congressperson Byron Donalds shared harsh criticism of US regulatory agencies’ handling of cryptocurrency at the recent NFT.NYC 2023 conference. According to Donalds, these regulatory bodies, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, appear to be launching what he terms “Operation Choke Point 2.0.” The strategy, he suggests, is aimed at impeding the crypto industry’s access to traditional banking services.
CUCKCOINERS ask for regulation and then cry when the government regulates them too hard or too little.
MONERO will never care, listen or ask for permission.pic.twitter.com/N52uMq5IY1
— Louis Signet (@LouisSignet) June 5, 2023
“Operation Choke Point 2.0” is a term used to describe a supposed coordinated government effort to discourage banks from providing services to cryptocurrency firms under the veil of maintaining financial safety and stability. Observers in the crypto industry believe that government-imposed access restrictions have noticeably escalated in 2023.
With respect to Binance, I'm reading through the SEC complaint. It's over 130 pages, but seems like the next in a series of steps to implement chokepoint 2.0 in the United States. The end goal is a agenda based CBDC partnered with a handful of massive banks and end-to-end control…
— Charles Hoskinson (@IOHK_Charles) June 5, 2023
Reflecting on his congressional tenure, Donalds stated that
“nothing is a coincidence with the government agency,”
hinting at a concerted effort in the government’s recent crypto regulation crackdown. He further added that agencies are now frequently communicating and brainstorming new methods to manipulate a desired outcome.
In addition to these restrictions, Donalds suggested that the Federal Reserve is actively preparing the groundwork for a Central Bank Digital Currency (CBDC) as part of their future plans for a digital dollar. These developments align with broader efforts to limit the banking system’s exposure to cryptocurrencies.
The Floridian representative also expressed concerns about the government’s lack of deep understanding of the crypto industry. He argued that current regulations are based on a century-old “legacy framework,” which is ill-suited to address today’s digital asset needs. To better illustrate this, he compared it to asking a sixth-grade basketball player to referee the NBA finals.
On a more personal note, Donalds took aim at SEC Chair Gary Gensler, describing him as
“a very arrogant individual”
who believes he is the most intelligent person in any room. According to Donalds, Gensler and the SEC represent “Old Washington,” a moniker he used to describe government agencies that resist change and innovation.
Donalds underscored the importance of educating regulators about the intricacies of digital assets and blockchain technology for fostering a healthier cryptocurrency environment in the United States. The recent strategies adopted by US authorities to impose restrictions on cryptocurrency firms and banks servicing them appear to echo past enforcement tactics. These tactics involve isolating the conventional financial system from the crypto market and employing multiple agencies to dissuade banks from engaging with crypto firms.
Such regulatory actions have impacted various businesses. Binance.US, the US arm of the global crypto exchange Binance, has recently struggled to find a new banking partner to facilitate fiat on-ramps and off-ramps for its customers. This has led to the company relying on intermediary banks to hold funds on its behalf, highlighting the ongoing challenges faced by the crypto industry amidst increasing regulatory pressures.
