US accused of trying to “quietly” ban Bitcoin, Ethereum and Crypto
BitcoinBTC, Ethereum and cryptocurrencies have bounced back from recent lows but are still under serious pressure.
The bitcoin price topped $24,000 per bitcoin last month, up from around $16,000 at the start of the year. Ethereum price has seen similar swings as the US lays out its long-awaited crypto roadmap.
Now, the Biden administration has been accused of trying to “quietly” ban bitcoin, ethereum and other cryptocurrencies in a move that has been described as “Operation Choke Point 2.0 — referring to a 2013 government initiative that sought to cut off unwanted industries from banking services.
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“Some in the crypto space believe that the recent efforts to delineate the crypto industry and cut its connection to the banking system are reminiscent of this little-known Obama-era program,” said bitcoin and crypto-focused venture capitalist Nic Carter, a partner. at Castle Island Ventures, wrote in a Substack post published by co-investor Mike SolanaSOL.
Last month, the Federal Reserve rejected crypto bank Custodia’s application to join its ranks, casting doubt on whether the Office of the Comptroller of the Currency will give final approval to crypto companies Protego and Paxos’ applications for national trust bank charters.
“The US government is using the banking sector to orchestrate a sophisticated, widespread attack against the crypto industry,” Carter wrote.
“And the administration’s efforts are no secret: they are clearly expressed in memos, regulatory guidance and blog posts. However, the breadth of this plan—spanning virtually every financial regulator—as well as its highly coordinated nature, has even the most steely-eyed crypto veterans who are nervous that crypto businesses could end up completely unbanked, stablecoins could be stranded and unable to handle flows in and out of crypto, and exchanges could be completely shut out of the banking system.”
The Biden administration has said Congress must “step up its efforts” to regulate the bitcoin and crypto markets, warning that it would be a “serious mistake” to allow ties between cryptocurrencies and the broader financial system to strengthen amid warnings of a ” global financial meltdown.”
The Biden administration’s stance on bitcoin and crypto has led to “a lot of crypto entrepreneurs now telling me they’re waiting for 2025 and a supposed DeSantis regime for things to turn around,” Carter added.
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However, some in the bitcoin and crypto space are more optimistic, predicting that it will be incumbents rather than crypto upstarts who fall behind.
Changpeng “CZ” Zhao, CEO of the world’s largest bitcoin, ethereum and crypto exchange Binance, has warned the Wall Street giants face an “existential risk” if they do not adopt crypto technology.
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