Coinbase, a leading cryptocurrency exchange, plays a pivotal role in countering 'Chokepoint 2.0', aimed at restricting crypto companies in the U.S.
Operation Chokepoint 2.0
Operation 'Chokepoint 2.0' is an attempt by U.S. regulators to limit the expansion of crypto companies by pressuring traditional banks not to engage with these firms. These measures are intended to maintain financial stability and combat risks like fraud and money laundering. However, many in the crypto community view them as attempts to curb innovation in the digital asset markets. This campaign reportedly began within the Department of Justice, involving agencies such as the FDIC exerting pressure on banks, classifying crypto businesses as high-risk.
Coinbase's Actions
Under Brian Armstrong's leadership, Coinbase has taken an assertive stance against what it perceives as unfair regulatory practices. By submitting Freedom of Information Act requests, they received heavily redacted 'pause letters' from the FDIC that detail efforts to limit banking services for crypto firms. Coinbase's Chief Legal Officer, Paul Grewal, criticized the FDIC for lacking transparency, noting that these letters show Operation 'Chokepoint 2.0' as far more than a mere conspiracy theory.
Prospects Under Donald Trump
With Donald Trump assuming the U.S. presidency, crypto enthusiasts are keen to see the direction his administration takes regarding digital asset regulation. The nomination of former SEC Commissioner, Paul Atkins, suggests a potential shift towards more crypto-friendly policies.
Coinbase's efforts may set a precedent for other industry participants and help foster an inclusive financial ecosystem in the U.S.
