24/7 Cryptocurrency News

Operation Choke Point 2.0: Crypto Not A Scapegoat For Regulators-Led Banking Crisis

Operation Choke Point 2.0, crypto industry questions US regulators on blaming crypto for banking crisis and its contagion.
Published by
Operation Choke Point 2.0: Crypto Not A Scapegoat For Regulators-Led Banking Crisis

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 is “real,” with sufficient evidence supporting it. CoinGape earlier reported that crypto-friendly banks such as Silvergate Bank, Signature Bank, and Metropolitan Commercial Bank would be the early targets of regulators to de-bank the crypto industry.

The collapse of Silvergate, Silicon Valley Bank, and Signature Bank was encouraged by the U.S. government and not because of crypto. While the banks provided services to some crypto clients, the reasons behind the closure of banks have nothing to do with crypto.

Silvergate’s early repayment of Federal Home Loan Bank of San Francisco loans through the sale of securities, Silicon Valley Bank’s mismanaging risk by putting customer deposits in long-dated securities and mortgage-backed securities, and Signature Bank’s forced shutdown by state regulators are the primary reasons behind the closures.

Reuters reported that regulators such as U.S. Fed and FDIC have asked banks to submit bids for acquiring Silicon Valley Bank and Signature Bank by March 17. The condition — any buyer must agree to give up all the crypto business.

Meanwhile, some blame crypto for causing a banking crisis and contagion spreading to other regions such as Europe. Credit Suisse’s financial issues date back to 2021 and banks exposed to Credit Suisse and SVB such as BNP Paribas are also under pressure. Credit Suisse has received $54 billion from the Swiss central bank, with shares recovering from downfall before the rate hike decision by the ECB.

Advertisement

Crypto Questions Regulators for Operation Choke Point 2.0

Crypto leaders such as Nic Carter, Cathie Wood, Elon Musk, Arthur Hayes, and CZ have questioned the crypto crackdown by the regulators. Ark Invest CEO Cathie Wood said crypto had nothing to do with the banks’ investment decisions, nor the Fed’s decision to increase interest rates 19-fold in less than a year. Crypto will move offshore, depriving the U.S. of blockchain and crypto innovations.

Congressman Tom Emmer wrote a letter to the FDIC chairman Gruenberg seeking answers to weaponizing the current instability in the banking sector to choke legal crypto activity in the U.S. He blames the government for making the strategy that could have a “disastrous effect” on American customers if the industry moves offshore.

Also Read: Shiba Inu Developer Admits Blunder With Shibarium Beta Chain ID

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury

Australia’s Fitell Corporation has purchased 216.8 million PUMP tokens for $1.5 million. The Nasdaq-listed company…

October 3, 2025
  • 24/7 Cryptocurrency News

FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading

FG Nexus has announced that it will allow shareholders to convert common stock into tokenized…

October 2, 2025
  • Bitcoin News

Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000

JPMorgan says Bitcoin (BTC) is undervalued compared to gold and could rise to $165,000, giving…

October 2, 2025
  • 24/7 Cryptocurrency News

Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand

Derivatives exchange CME Group has announced plans to begin offering 247/7  crypto futures and options…

October 2, 2025
  • Bitcoin News

Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months

Banking giant Citigroup has revised its Bitcoin prediction to $231,000 in the next 12 months,…

October 2, 2025
  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025