Binance CEO “CZ”, Nic Carter On Repercussions Of Operation Choke Point 2.0

The Biden Administration’s highly coordinated plan with regulators to strangle the crypto industry by cutting ties with the banking sector — Operation Choke Point 2.0 — has failed. The regulators’ action against crypto backfired and instead caused the banking crisis.

Binance CEO Changpeng “CZ” Zhao took to Twitter to share Nic Carter’s new feature on how the U.S. government started a global financial crisis in its effort to destroy crypto by de-banking the crypto industry.

US Ignites Global Financial Crisis

Bitcoin maximalist Nic Carter said the closure of crypto-friendly Silvergate, Silicon Valley Bank, and Signature Bank by regulators resulted in events that led to a widespread banking crisis. He believes it’s the biggest challenge to financial stability since the Great Financial Crisis in 2008, despite efforts of regulators and big banks to contain the banking crisis.

CoinGape earlier reported the primary reasons behind the collapse of three U.S. banks and the crypto industry’s response to the allegations.

Documents and public evidence suggest Silvergate and Signature banks were forcibly closed by the regulators. U.S. Fed Chair Jerome Powell declaring further rate hikes and Treasury Secretary Janet Yellen refusing blanket insurance for bank deposits will continue bank runs.

Despite questions raised by several members of US Congress, the SEC, OCC, and the Fed have continued crackdown against the crypto industry. On Thursday, the SEC sent Coinbase a Wells Notice and filed a lawsuit against Justin Sun as part of the continued action against crypto. The banks are now reluctant to work with crypto firms amid heightened scrutiny from regulators.

He asserts FDIC Chair Martin Gruenberg was behind Operation Choke Point from 2013 to 2017 and he is now targeting the crypto industry. The U.S. Congress should question Gary Gensler, Elizabeth Warren, and other people behind Operation Choke Point 2.0.

Elon Musk, Bill Ackman, Balaji Srinivasan, Cathie Wood, Arthur Hayes, and others have criticized the Fed, FDIC, and Treasury Dept for their approach amid the banking crisis.

Also Read: Terra’s Do Kwon Reportedly Founded Crypto Firm In Serbia, S. Korea Seeks Extradition