The US Senate Banking Committee will hold a hearing focused on de-banking the cryptocurrency industry on February 5, as part of a sweeping investigation launched to dismantle the so-called Operation Chokepoint 2.0.
The US Congress has launched an investigation into allegations of a secret campaign launched to block banking access to cryptocurrency companies during the Joe Biden administration.
This investigation, centered on what is known as “Operation Chokepoint 2.0,” has sparked intense political debate and concern in the cryptocurrency industry. The Senate Banking Committee has scheduled a hearing for February 5, where the alleged abuse of power by Biden administration regulators will be discussed.
Committee Chairman Tim Scott said the hearing is part of a broader investigation into whether deliberate actions were taken to harm cryptocurrency companies and limit their access to the traditional U.S. financial system.
The shadow of Operation Chokepoint 2.0 over cryptocurrencies
The so-called “Operation Chokepoint 2.0” refers to an initiative pushed by the Biden administration to deny access to financial services to individuals and companies related to cryptocurrencies and digital assets. Financial regulators reportedly put pressure on banks to deny their services to cryptocurrency companies, as well as conservative political figures and other entities deemed politically undesirable.
While there appears to be no public documentation confirming the formal existence of a program of this name, Congress has launched an investigation seeking to determine whether there was a coordinated strategy to limit access to the financial system through informal or indirect pressure. This pressure is alleged to have been exerted by taking advantage of banks' concerns about regulatory compliance and money laundering risks with crypto assets.
Scott, chairman of the Senate Banking Committee, said that this investigation will focus on determining whether the Biden administration employed tactics similar to those used in the original Operation Chokepoint, implemented during the Obama administration.
The original Operation Chokepoint was intended to reduce financial crime, but was criticized for its lack of transparency and for allegedly harming legitimate businesses. In the current context, concerns center on the possibility that “Operation Chokepoint 2.0” has been used as a tool to silence dissenting voices and harm companies operating in the rapidly growing cryptocurrency market.
“Unfortunately, under Operation Chokepoint 2.0, Biden regulators abused their power and forced financial institutions to cut off services to digital asset firms, political figures, and conservative-aligned businesses and individuals. This is unacceptable. As Chairman of the Senate Banking Committee, I look forward to working with President Trump, industry leaders, and members of both parties to stop these abuses.”, said President Scott.
The silenced voices in the crypto world
Several cryptocurrency companies have been reporting difficulties in accessing banking services, including opening accounts, processing payments, and accessing lines of credit. These difficulties have been attributed to the pressure exerted by regulators on financial institutions. These testimonies from crypto company executives, together with the analysis of the evolution of this economic activity in the United States during the period covered by the investigation, may provide relevant elements to establish the existence of Operation Chokepoint 2.0.
The congressional inquiry aims to give voice to these concerns and examine whether allegations of debanking are the result of individual decisions by banks or direct or indirect pressure from regulators. The hearing on February 5 is expected to shed light on these practices and their potential implications for the cryptocurrency ecosystem.
The turn under the new Trump administration
The current administration of Donald Trump, which began on January 20 after taking office at the White House, seeks to boost innovation in the cryptocurrency sector, marking a significant shift in US policy towards these technologies.
President Trump has publicly expressed his interest in regulating the sector in an intelligent manner, encouraging competition and innovation while protecting investors from fraudulent practices. His stance contrasts with the actions of the Biden administration, which sought to limit activity and growth in the crypto sector.
Now, the new administration has declared its intention to ensure that all legal companies, including those operating in the cryptocurrency market, are treated fairly and equally, regardless of their political beliefs. This statement underscores the current administration's commitment to protecting free enterprise and competition in the marketplace, and also suggests that the current investigation is not just a political or partisan fight, but a move to prevent what is perceived as a practice that undermines competition in an emerging industry.
In this context, the outcome of the investigation into “Operation Chokepoint 2.0” will have profound consequences for the future of cryptocurrencies in the United States.
Beyond the political debate
But beyond the United States, the recent investigation launched by Congress and the House of Representatives into the debanking of the crypto industry is expected to have important implications globally.
The decision of whether or not to regulate the cryptocurrency sector, and how to do so, significantly influences the development of technological innovations in the world, so the results of the research can be used as a precedent for the action of other states regarding the activity of entities related to the cryptocurrency sector.
Amidst these developments, the crypto community is celebrating the regulatory clarity that the Trump administration is seeking so that the crypto industry can generate confidence, attract investment and realize its full innovation potential.
In conclusion, the ongoing investigation into Operation Chokepoint 2.0 is a pivotal event that is shaping the future of cryptocurrencies in the United States and, potentially, around the world.
