Several leaders in the crypto industry met with White House officials to discuss the relationship between the fintech sector and the U.S. Democratic Party. The meeting became tense when the government denied allegations of a coordinated effort to cut off crypto firms from the banking system, also known as “Operation Chokepoint 2.0.”
During the meeting, Deputy Treasury Secretary Wally Adeyemo reassured attendees that regulators were not actively trying to disconnect crypto from the financial system. However, when asked how many crypto companies had been denied banking access due to White House policies, almost all industry members, including prominent figures like Mark Cuban and Anthony Scaramucci, raised their hands.
The issues surrounding crypto banking have been ongoing for years, particularly following the collapse of FTX, which led to increased regulatory scrutiny on blockchain firms. In February, Nic Carter from Castle Island Ventures highlighted these efforts in a blog post titled “Operation Choke Point 2.0 Is Underway,” pointing out guidance from regulatory bodies discouraging banks from servicing crypto companies.
Despite the tensions at the meeting, some in the crypto industry remain optimistic about engaging with the Harris administration. Anthony Scaramucci believes progress is being made, while Coinbase’s CLO sees potential in Kamala Harris becoming a strong advocate for crypto. However, skepticism remains about whether these gestures will lead to concrete policy actions.
Gemini co-founder Tyler Winklevoss questioned why Harris did not attend the meeting, further fueling doubt about the administration’s commitment to crypto. The recent Federal Reserve enforcement action against Customers Bancorp, requiring the bank to provide advance notice before entering new relationships with digital assets companies, reinforced concerns about ongoing efforts akin to Operation Chokepoint 2.0.
In conclusion, the crypto industry continues to face challenges in its relationship with the White House and the Democratic Party. While some remain hopeful for positive engagement, doubts persist about the administration’s intentions and commitment to supporting crypto businesses. It remains to be seen how these dynamics will evolve in the future as the industry navigates regulatory uncertainties.