Is Operation Chokepoint 2.0 Threatening the Future of Crypto Banking?

Tyler Winklevoss, co-founder of the U.S.-based exchange Gemini and VC firm Winklevoss Capital, has raised alarms about the current state of Operation Chokepoint 2.0, a strategy aimed at making it harder for crypto companies to access banking services.

Winklevoss Calls Out the Federal Reserve

Winklevoss’ warnings come in the wake of the Federal Reserve identifying deficiencies at Customers Bank, a bank known for its crypto-friendly stance, regarding compliance with anti-money laundering requirements. He emphasized that this action is part of a broader anti-crypto agenda.

“Operation Chokepoint 2.0 remains in full swing,” Winklevoss stated, shedding light on its mechanisms and asserting that the proposed Harris crypto “reset” is a scam.

Operation Chokepoint 2.0 refers to government initiatives to restrict the operations of established cryptocurrency firms in the U.S. by targeting essential services like banking.

The Federal Reserve pointed out “significant deficiencies” in the bank’s compliance practices, leading to stricter measures that require Customers Bank to inform the Federal Reserve of any new banking relationships with crypto companies at least 30 days in advance.

Winklevoss criticized this decision, arguing that the bank's compliance issues could have been resolved without imposing barriers on crypto institutions seeking banking access.

“Given that Customers Bank is one of the only remaining crypto-friendly banks in America, this means the Fed is now a direct gatekeeper between crypto companies and their ability to secure new bank accounts,” he noted.

Previously, Cameron Winklevoss, Tyler’s twin brother, had also expressed concerns about the so-called “crypto reset” that Vice President Kamala Harris purportedly aims to implement, labeling it a “big bluff.”

What are your thoughts on the Fed’s actions against Customers Bank? Share your views in the comments below.