Fed’s Operation Choke Point 2.0 Intact Amid Action on Customers Bank

Highlights

Fed's Operation Choke Point 2.0 in action with regulatory whiplash on Customers Bank.
Tyler Winklevoss calls Harris' "crypto reset" a scam amid strong actions against crypto industry.
Caitlin Long of Custodia Bank said that the Fed officials are known for throwing crypto friendly banks under the bus.

As the US Federal Reserve cracked down on crypto-friendly Customers Bank on Thursday, Gemini crypto co-founder Tyler Winklevoss said that this is nothing but Operation Choke Point 2.0. While on one hand, the Harris administration is trying to bridge gaps with the crypto industry, the Fed acts exactly the opposite. Operation Choke Point refers to US regulators using financial censorship to pressure the crypto industry.

Fed Operation Choke Point 2.0

On Thursday, August 8, the US Federal Reserve initiated an action on crypto-friendly Customers Bank highlighting insufficient AML and risk management. The crypto industry veterans see this as another iron-fist approach by the Fed to scuffle crypto-friendly banks in the United States. Tyler Winklevoss also lashed out at the Harris administration calling their “crypto reset” approach nothing but a scam.

Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto “reset” is a scam. The Fed revealed all of this in a 13-page enforcement action it issued this morning against… pic.twitter.com/zhLRRWAH0E

— Tyler Winklevoss (@tyler) August 9, 2024

In another message, Gemini co-founder Cameron Winklevoss wrote: ” Dear Customers Bank – thank you for banking crypto. We all owe you a debt of gratitude. Your courage will not be forgotten. Sorry, you have to deal with this nonsense. But this too shall pass. Onward!”

Also Read: Donald Trump Jr Hints At Official Crypto Project Launch

Caitlin Long Calls Out the BS on White House Meeting

On Thursday, the crypto industry had heated arguments with Democratic leaders in the White House meeting calling out them on their approach towards crypto regulations. Reports suggest that U.S. Deputy Secretary of the Treasury Wally Adeyemo and National Economic Council Director Lael Brainard were quite forthcoming in understanding the actual problems of the crypto industry.

However, Custodia Bank founder Caitlin Long called out the “BS” on this. Calling this meeting absolutely unproductive, Long emphasized the need for actions rather than words.

The Custodia Bank founder called out Lael Brainard, stating that before her transition from the Federal Reserve to the White House, she threw Custodia Bank “under the bus”. She added that Brainard is very much a part of Operation Choke Point 2.0 and all the current developments are nothing but theatrics. “If she delivers actions to reverse the damage, I’ll be fair and change my mind,” added Long.

Also Read: Breaking: Kamala Harris and Donald Trump Agrees On Debate Schedule

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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