De-platforming Crypto Businesses
Crypto enthusiasts are raising concerns about a coordinated effort by US banks to cut ties with businesses dealing in digital currencies. This effort, known as Operation Choke Point 2.0, aims to restrict crypto’s access to traditional financial systems.
Wells Fargo’s Abrupt Closure
John Paller, founder of ETHDenver, shared his experience with Wells Fargo, which abruptly closed all his accounts without explanation. Paller believes the closure was related to his involvement with crypto-affiliated companies.
Industry-Wide Phenomenon
Gabor Gurbacs, an advisor to Tether and VanEck, confirmed that many businesses with crypto connections are being de-platformed by banks. This suggests a systemic issue within the banking industry.
Custodia Bank’s Involvement
Caitlin Long, CEO of Custodia Bank, has seen an increase in inquiries from crypto companies displaced by their banks. Long believes this is part of an orchestrated effort against the crypto industry.
Custodia’s Legal Battle
Custodia Bank is fighting for banking equality. The bank’s application for a Federal Reserve master account was recently denied, a decision criticized by industry leaders.
Political Motivation
Long alleges that the crackdown on crypto companies is politically motivated. She believes it could be an election issue in November.
Impact on Crypto Industry
The crackdown is not only affecting individual businesses but also hindering the crypto industry’s integration into the traditional financial system.
