The US is trying to “quietly ban cryptocurrencies,” says expert

Bitcoin expert Nic Carter points out that the US is ready to “version 2.0” of Operation Choke Point and that cryptocurrencies are targeted in this indirect attack.

Basically, Operation Choke Point was introduced in 2013 during the Obama administration to investigate the link between banks and illegal activities such as money laundering and other crimes.

Referring to a series of actions taken by the US government in recent months, Carter is confident that the US is “quietly trying to ban cryptocurrencies”.

“Crypto Choke Point 2.0 differs from the original in a number of important ways. It seems that the government has learned from the efforts of its predecessors.”

Carter continues that “Choke Point 1.0” was informal. Already in version 2.0, “Everything happens in plain sight, in the form of regulations, sold as a safety issue.”

Recent US government attacks on cryptocurrencies

Expert Nic Carter was keen to list the government’s actions in chronological order. There are already 14 US investors in total as of December 6, with the last one being published on Wednesday (December 8).

“So why the pressure from banking regulators now?” asks Carter. “If they can block fiduciary access, they can marginalize the industry – internally and externally – without directly regulating it.”

• On December 6, senators sent a letter to Silvergate Bank berating them for providing services to FTX and Alameda Reserach.
• On December 7, the [banco] Signature announces its intention to halve deposits attributed to cryptocurrency customers.
• On January 3, the Fed, FDIC and OCC released a joint statement on the risks facing banks involved in cryptocurrencies.
• On January 9, Metropolitan Commercial Bank announces the complete shutdown of its crypto-related branch.
• On January 9, Silvergate shares fell to $11.55 due to bank runs and insolvency fears, after trading at $160 in March 2022.
• On January 21, Binance announces that they will only process fiat transactions over $100,000 due to the Signature banking policy.
• On Jan. 27, the Federal Reserve denies cryptobank Custodia’s two-year application to join the Fed system, citing “safety and soundness” risks.
• On Jan. 27, the Kansas City branch of the Fed denies Custodia’s request for a master account, which would have allowed it to use wholesale payment services and hold reserves directly with the Fed.
• On January 27, the Fed issues a statement discouraging banks from holding crypto assets or issuing stablecoins and expanding its authority.
• On January 27, the National Economic Council will release a policy statement, strongly discouraging banks from trading crypto assets directly or maintaining exposure to crypto depositors.
• On February 2, the DoJ’s Fraud Unit announces an investigation into Silvergate regarding its dealings with FTX and Alameda.
• On February 6, Binance will suspend USD bank transfers for retail customers.
• On Feb. 7, the Fed’s Jan. 27 statement enters the Federal Register, making the policy statement a final rule with no congressional review or public notice and comment period.
• As of Feb. 8, Protego and Paxos’ applications to follow Anchorage and get full approval to become National Trust Banks are still pending (after the 18-month deadline) and it looks like the OCC will soon be rejected.

The US government would indirectly attack Bitcoin and other cryptocurrencies

That’s why Nic Carter believes the US is “quietly trying to ban cryptocurrencies”not directly, but by attacking the gateways to this asset class.

The expert’s opinion reflects the article published by live coins noting two weeks ago that US banks are under pressure to cut ties with cryptocurrency companies, citing the examples of Silvergate and Signature.

Finally, another point Carter failed to mention was the recent push from senators to force Bitcoin miners to report the energy consumption of their operations. While not a direct attack on Bitcoin, the Biden administration’s efforts to crack down on it are evident.