Trump-Appointed Crypto Chief Denounces Operation Choke Point 2.0
David Sacks, the crypto chief appointed by the Trump administration, has taken a stand against Operation Choke Point 2.0 on social media. This alleged effort by U.S. regulators aims to restrict banking access for crypto firms, prompting Sacks to express his concerns about the negative impacts of such policies.
Sacks took to Twitter to voice his worries, stating that there have been too many stories of people being harmed by these measures. The implications of limiting banking access for crypto companies could have far-reaching consequences for the industry.
Former President Donald Trump has also weighed in on the issue, promising to terminate Operation Choke Point 2.0 if he were re-elected. Trump emphasized the importance of creating a fair and inclusive banking environment for crypto companies to thrive and innovate.
Operation Choke Point 2.0: A Controversial Initiative
Operation Choke Point 2.0 is seen as a modern version of the original program that was introduced during the Obama administration. The primary goal of the initiative is to restrict banking services to industries considered high-risk, including payday lenders and firearms dealers. However, critics argue that targeting crypto firms could hinder innovation and harm the U.S.’s position in the global digital economy.
The Impact on Silvergate Bank
The debate surrounding Operation Choke Point 2.0 escalated when Chris Lane, a prominent crypto commentator, shared his insights on the policy’s implications. Lane highlighted the role of Silvergate Bank’s SEN (Silvergate Exchange Network) in facilitating cryptocurrency transactions, which faced regulatory scrutiny leading to its eventual collapse.
David Sacks echoed Lane’s concerns, attributing the collapse of Silvergate to regulatory actions. Sacks criticized authorities for employing “bait and switch” tactics that left the bank trapped in a challenging regulatory environment, ultimately leading to its downfall.
As the crypto industry continues to navigate regulatory challenges, it is essential for policymakers to consider the broader implications of their actions on innovation and economic growth.
*This is not investment advice.