Key Takeaways
- Sen. Cynthia Lummis is demanding that the Federal Reserve release documents related to Operation Chokepoint 2.0.
- Trump vowed to end anti-crypto policies, and recent actions suggest that his administration is following through.
- FDIC documents confirm stay orders against crypto partnerships, reinforcing allegations of a coordinated crackdown.
Sen. Cynthia Lummis is ramping up pressure on the Federal Reserve, demanding the release of documents related to Operation Chokepoint 2.0.
Operation Chokepoint 2.0 refers to a series of unofficial directives that pressured banks to sever ties with crypto firms.
While regulators have downplayed its existence, industry leaders have long accused federal agencies of stifling crypto innovation through backdoor restrictions.
Lummis Pushes for Transparency on Crypto Restrictions
Lummis, who chairs the Senate Banking Subcommittee on Digital Assets, sent formal document requests to the Federal Reserve Board of Governors and the Federal Reserve Banks of Dallas and Richmond.
She set a March 13 deadline for the Fed to respond, emphasizing that claims of privilege or confidentiality do not exempt the agency from congressional oversight.
“Congress has a constitutional duty to conduct thorough oversight, and Chairman Tim Scott and I are making sure the American people get the answers they deserve on Operation Chokepoint 2.0,” Lummis stated.
Trump Administration Moves to Reverse Anti-Crypto Policies
Trump, who campaigned on promises to end regulatory hostility toward crypto, has wasted no time in delivering on that pledge.
Within his first week in office, Trump signed an executive order aimed at easing restrictions on financial institutions offering crypto services.
Under his administration, acting SEC Chair Mark Uyeda quickly rolled back the controversial SAB 121 accounting guidelines, paving the way for major banks to provide crypto custody services.
Meanwhile, Travis Hill, the acting chairman of the Federal Deposit Insurance Corporation (FDIC), has declassified 175 documents confirming that Operation Chokepoint 2.0 was not just speculation but an active initiative.
Among the revelations were 25 “pause” letters sent by the FDIC in 2022, advising banks under its supervision to halt all crypto-related activities.
These findings align with reports from industry figures like Ripple CEO Brad Garlinghouse and Kraken CEO Jeremy Powell, both of whom claim their companies were directly targeted.
Regulatory Overreach Under Scrutiny
The crackdown on crypto intensified after several bank failures linked to digital assets.
The Biden administration initially denied any coordinated effort to restrict crypto firms’ access to banking services, but internal documents obtained by Coinbase suggest otherwise.
More than a dozen instances have surfaced where banks were reportedly pressured to cut ties with crypto clients, fueling accusations that regulators deliberately sought to choke off the industry’s financial lifelines.
With Lummis leading the charge in Congress and Trump’s administration actively dismantling anti-crypto policies, the battle over crypto regulation is far from over.
The coming weeks could reveal whether Operation Chokepoint 2.0 is truly being brought to an end—or merely shifting to a new front.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
