Caitlin Long, CEO of Custodia Bank, says the recent easing of crypto regulations by the Office of the Comptroller of the Currency (OCC) doesn’t signal the end of the government’s alleged campaign against the crypto industry. She argues that “Operation Choke Point 2.0” – the unofficial name for this alleged campaign – is far from over.
OCC Eases Restrictions, But Concerns Remain
The OCC recently announced that banks can now offer more crypto services, including custody and stablecoin activities. Acting Comptroller Rodney Hood stated this would reduce regulatory burdens and ensure consistent treatment of crypto-related banking activities.
However, Long believes this is only a partial victory. She points out that the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC) still maintain unfriendly stances toward crypto.
The Fed and FDIC: Still a Problem
Long highlights that the OCC’s move primarily affects OCC-regulated banks. Many banks facing pressure to avoid crypto services were actually regulated by the Fed and FDIC. Therefore, the OCC’s change doesn’t solve the underlying issue.
Long cites a Freedom of Information Act (FOIA) request by Coinbase revealing numerous instances where the FDIC asked banks to cut ties with crypto businesses. She also emphasizes the need for Custodia Bank to receive a master account from the Federal Reserve – a crucial step for any financial institution.
Long’s Demands for a True End to the Crackdown
Long outlines two key requirements for Operation Choke Point 2.0 to truly end:
- The Fed and FDIC must reverse their anti-crypto guidance.
- Custodia Bank must receive its Fed master account.
Until these conditions are met, Long believes the government’s alleged campaign against the crypto industry continues. The House Oversight Committee is also investigating the FDIC’s actions regarding alleged de-banking of crypto companies, adding further fuel to the ongoing debate.
