Key Takeaways
- GOP House launches ChokePoint 2.0 investigation, targeting crypto debanking and allegations of regulatory overreach.
- Influential tech leaders have been requested to provide information on potential regulatory pressures from federal agencies.
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The GOP-led House Oversight Committee has launched an investigation into allegations of unlawful debanking practices targeting crypto companies and tech startups.
The investigation, dubbed ChokePoint 2.0, focuses on allegations that the Biden administration weaponized financial exclusion against political opponents and disfavored industries.
It examines claims of improper debanking practices targeting individuals and entities based on their political viewpoints or involvement in sectors such as crypto and blockchain.
The committee, under the leadership of Rep. James Comer, has sent letters to key crypto industry figures, exchanges, and financial institutions, seeking detailed accounts of whether they faced regulatory pressure or were unlawfully denied banking services.
The committee, led by Rep. James Comer, sent letters to prominent figures including Uniswap Labs’ Hayden Adams, Andreessen Horowitz’s Marc Andreessen, Coinbase CEO Brian Armstrong, Lightspark CEO David Marcus, Payward CEO David Ripley, and Blockchain Association CEO Kristin Smith.
The investigation seeks to determine whether federal agencies influenced banks to restrict services to lawful crypto companies, with particular focus on communications between regulators and financial institutions.
Marc Andreessen, co-founder of Andreessen Horowitz, claimed on The Joe Rogan Experience that over 30 tech founders have lost banking services in recent years without explanation.
He alleged the Biden administration is behind what he termed “Operation Chokepoint 2.0,” referencing the Obama-era Operation Chokepoint that targeted industries like firearms and cannabis.
The letter addressed by the House Oversight Committee included comments from Coinbase co-founder and CEO Brian Armstrong, who confirmed that 30 founders had been debanked, citing it as evidence of Operation ChokePoint 2.0’s reality.
Armstrong alleged that then-SEC Chair Gary Gensler unlawfully sought to dismantle the crypto industry.
Additionally, Coinbase Chief Legal Officer Paul Grewal stated that financial regulators had employed various tools to cripple the digital asset sector, underscoring the systematic nature of the debanking practices.
The Blockchain Association acknowledged receiving the committee’s letter and established an anonymous tipline for individuals affected by debanking to share their experiences.
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