David Sacks, who was recently appointed by Donald Trump as the new crypto czar, has raised concerns about the damaging effects of Operation Choke Point 2.0, a controversial initiative that cuts off banking services to crypto companies. Could this new effort be the turning point the crypto industry needs?
Sacks to Investigate Operation Choke Point 2.0
In a recent tweet post on the X, Sacks highlighted the numerous stories of individuals suffering due to the actions of the regulators. He stated, “There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at.
Sacks’ statement comes as part of ongoing discussions regarding the operation, which has been criticized for pushing crypto-related businesses out of the banking system. His remarks were sparked by comments from Chris Lane, CTO of Silvergate Bank, who explained how the bank had been forced into bankruptcy due to regulatory pressure.
Lane noted the impact of the collapse of FTX in November 2022 and how regulators played a role in Silvergate’s financial struggles, stating that “FTX didn’t kill us; our regulators did.”
Sacks’: A Ray Of Hope
Sacks, a key figure in the crypto world, has pledged to investigate and expose the practices behind Operation Choke Point 2.0. His involvement in this issue has sparked hope in the crypto community, with many believing he can ease harmful regulations.
Meanwhile, Trump had already made clear during his campaign that if elected, he would take immediate steps to halt Operation Choke Point 2.0 and restore a fairer environment for crypto companies.
Coinbase’s Push for Transparency
On the other hand, Coinbase is working to uncover evidence that the U.S. government has secretly targeted crypto for years. The company recently received 23 redacted letters from the FDIC, showing that banks were told not to offer crypto services without more guidance. This suggests Operation Choke Point 2.0 may be broader than we thought.
Industry leaders, like Coinbase CEO Brian Armstrong, believe David Sacks can help. Armstrong said, “It’s exciting to think about what sharp, pro-tech people can do in government.”
As the investigation continues, all eyes are on Sacks to protect crypto from unfair rules.
Source: https://coinpedia.org/news/crypto-czar-david-sacks-vows-to-investigate-operation-choke-point-2-0s/