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- Senator Lummis demands FDIC accountability for alleged document destruction tied to Operation Chokepoint 2.0, a move critical to regulatory transparency.
- The crypto industry adapts through stablecoins, showcasing resilience amid the banking restrictions imposed by Operation Chokepoint 2.0.
The Federal Deposit Insurance Corporation (FDIC) faces scrutiny for allegations of document destruction related to Operation Chokepoint 2.0, as raised by Wyoming Senator Cynthia Lummis. This urgent action by Senator Lummis is crucial, given that unclear regulations have caused the number of U.S.-based crypto companies to drop by more than 50%, according to a previous CNF update.
In her letter to the FDIC, Lummis directed the agency to preserve all documents connected to digital asset activities, including the oversight of Signature Bank and Silvergate Bank’s liquidation. She warned of severe consequences, including criminal referrals to the Department of Justice, if deliberate obstruction of Senate oversight is discovered.
For purposes of this letter, “preserve” means securing and maintaining the integrity of all relevant materials, including electronic information and metadata, by taking all reasonable steps to prevent destruction, alteration, or handling that could render the information incomplete or inaccessible.
Debanking and Industry Outcry
As reported in another CNF update, Lummis confirmed the materialization of Strategic Bitcoin Reserve Plans following Trump’s victory. This development ties into Operation Chokepoint 2.0, an initiative aimed at cutting crypto companies off from traditional banking services, which has significantly impacted the industry globally. Prominent crypto founders have spoken out against these actions.
In addition, following Marc Andreessen’s remarks on The Joe Rogan Experience, over 30 executives, including Frax Finance founder Sam Kazemian and Coinbase CEO Brian Armstrong, shared debanking experiences. Armstrong pursued legal action, filing a Freedom of Information Act request to obtain FDIC documents. Judge Ana Reyes criticized the FDIC for heavily redacted disclosures, demanding greater transparency and calling their approach lacking in good faith.
Crypto Industry Adapts Amid Pressure
Despite regulatory challenges and restricted access to banking services, crypto firms have adapted by leveraging stablecoins to fund operations. This resilience underscores the industry’s ability to innovate under pressure.
The controversy surrounding the FDIC and Operation Chokepoint 2.0 highlights broader concerns about regulatory transparency and the future of crypto’s relationship with traditional finance. According to CoinMarketCap data, Bitcoin (BTC) is rebounding to its last peak, trading at $101,033.04, reflecting a 1.47% increase in the past day and a 7.92% rise over the past week.
