Operation Choke Point, launched by the Barack Obama administration in 2013, aimed to combat fraud and illegal activities by preventing criminals from accessing the banking system. It aimed to “stifle” illegal activity by forcing banks to cut ties with high-risk businesses.

However, there were concerns that this app unfairly targeted legitimate businesses. When the program ended in August 2017, the Justice Department said it harmed legitimate businesses.

Choke Point 2.0 began with the Biden administration’s efforts to isolate the crypto industry from the banking sector. Venture capitalist Nic Carter noted that these movements have grown from small steps to a large-scale push.

Specifically, the presidential administration has launched a coordinated plan across various agencies to deter banks from doing business with crypto firms. These efforts targeted both traditional banks serving crypto customers and crypto firms.

Carter stated that banks interested in cryptocurrencies are currently in a desperate situation and many financial institutions describe cryptocurrencies as “toxic”.

Carter gave examples of the consequences of unthought-out policies. He noted that Signature Bank experienced a significant decrease in the volume of cryptocurrency deposits, the cryptocurrency division at Metropolitan Commercial Bank was closed, Silvergate was subject to an investigation into Alameda Research’s accounts, and Binance suspended US dollar bank transfers.

He emphasized that this pressure stemmed from the FTX crypto exchange crash and its aftermath. FTX, as an offshore exchange, was not under direct control.

Carter stated that they are trying to marginalize the industry in the country and internationally by restricting access to fiat money. In version 2.0, everything happens in plain sight, in the form of rules and guides. A month after Carter’s article, Silvergate Bank went bankrupt and was closed due to systemic risks, following the closure of Silicon Valley Bank.

Operation Choke Point 2.0 replaced the original project and aims to achieve similar results. This modernized version forces banks and lenders to cut financing and other financial services to high-risk sectors.

The increased regulatory attention to the crypto industry in recent years is in line with the concept of Operation Choke Point 2.0, where US regulators seek to make it more difficult to access crypto through traditional financial platforms.

The US Securities and Exchange Commission (SEC) has stepped up its efforts to regulate crypto companies. Staff Accounting Bulletin 121, published by the SEC in 2022, contains recommendations regarding the reflection of cryptocurrencies on the balance sheet. This makes the process costly and limits large-scale custody services.

Beginning in 2024, US government officials called for softening on this document, while Biden vetoed SAB 121 in June. Additionally, it was reported that the SEC gave recommendations on methods to prevent cryptocurrencies from being reflected in the balance sheet.

Some major banks have been authorized to bypass regulations as of 2023. Experts state that preventing the development of decentralized technologies is treason. Yona Network CEO Max Sultakov emphasized that the United States’ leadership in technical innovation must be maintained.

US presidential candidate Donald Trump said he would immediately stop Operation Choke Point 2.0 if elected. Trump promised to fire SEC Chairman Gary Gensler and ensure a level playing field for Bitcoin and financial technology companies.