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Highlights
- Bitcoin miners faced Operation Chokepoint 2.0 strain from the Biden administration
- Political and industry leaders are calling for an investigation into this debanking and unplugging efforts
- Question remains whether Crypto Czar and the White House can make needed reforms before next mid-term election
Brian Morgenstern, a Riot Platforms Public Policy Executive has shared insights into how the Joe Biden administration’s Operation Chokepoint 2.0 spread to the Bitcoin mining industry. With the similar aims that the regime’s debanking efforts had, Morgenstern said the goal remains to “unplug” miners from the energy grid. The flag on this government overreach calls for immediate investigation according to Morgenstern.
Operation Chokepoint 2.0 in Bitcoin Mining
In an OpEd by Morgenstern and Sam Lyman, the chokehold in the mining industry started in 2022. They recalled that at the time, the Biden Aministration published a White paper on Central Bank Digital Currencies (CBDCs). The White paper proposed limiting or eliminating Bitcoin mining in the country.
They both highlighted with specificity the Operation Chokepoint 2.0 strategy employed by the Biden White House. This include imposing a 30% tax on the energy that mining firms utilized in their operations. The authors also noted that the government demanded a comprehensive energy audit from all Bitcoin miners earlier this year.
Rather than give in to the demand, these crypto mining firms sued and won the government for the regulatory overreach. They pointed out that these unplugging agenda was the governments’ way of controlling emerging economies.
Meanwhile, many industry leaders have also attested to the Operation Chokepoint 2.0 manifestations in other areas beyond Bitcoin mining. Silvergate Bank’s former CTO Chris Lane has always shared his account of how Federal regulators fueled the collapse of the crypto friendly bank.
Beyond speculations, recent Coinbase files revealed FDIC’s role in debanking crypto firms in the United States. This presented a clear evidence of the claims debanking claims of the regulator.
Where to From Here?
With the exposition of the subtle attack on Bitcoin mining by the Operation Chokepoint 2.0 agenda of this administration, lawmakers like Rep French Hill are calling for investigation into the chokepoint claims.
Morgenstern and Lyam also echoed this sentiment, directly calling on swift action from the incoming Donald Trump administration. Trump’s appointed Crypto Czar David Sacks has also shared his take on investigating the Operation Chokepoint 2.0.
With the mission spelt out, industry leaders including John Deaton are now skeptical on whether the administration can act fast before the Midterm elections which might change Congress’s majority.
The midterm elections come quick. Let’s hope @realDonaldTrump @JDVance @elonmusk @VivekGRamaswamy @DavidSacks @BoHines @howardlutnick Scott Bessent and others make it happen within the first 2 years. https://t.co/I0mgXTB3na
— John E Deaton (@JohnEDeaton1) December 30, 2024
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