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Coinbase has intensified its investigation into the Federal Deposit Insurance Corporation (FDIC), shifting its focus to the agency’s potential role in what has been dubbed “Operation Chokepoint 2.0.” The inquiry raises concerns over whether regulatory agencies have unfairly targeted cryptocurrency firms by pressuring banks to sever ties with the industry.
The Origins of Operation Chokepoint 2.0
Operation Chokepoint 2.0 is a term used by crypto advocates to describe what they believe is a coordinated effort by U.S. regulators to restrict the industry’s access to banking services. While no official operation has been acknowledged, several crypto companies have faced banking disruptions, increased scrutiny, and regulatory roadblocks in recent years.
Coinbase, one of the largest cryptocurrency exchanges in the U.S., has been at the forefront of this battle. Initially focusing on broader regulatory challenges, the company is now zeroing in on the FDIC, seeking transparency regarding its policies and actions related to crypto firms.
Why Is Coinbase Investigating the FDIC?
Coinbase’s latest move follows reports that the FDIC may have exerted pressure on banks to limit their relationships with crypto-related businesses. The company has requested records, internal communications, and policy documents to determine whether the agency played a role in restricting financial services for digital asset firms.
Regulators argue that increased oversight of crypto-related banking relationships is necessary to protect consumers and the financial system. However, crypto advocates claim that these actions amount to unfair discrimination against a legitimate industry.
The Bigger Picture: Crypto vs. Regulators
Coinbase’s probe into the FDIC is part of a broader pushback from the crypto industry against what it sees as overreach by financial regulators. The company has been actively lobbying for clearer rules, pushing back against enforcement actions, and engaging in legal battles to secure fair treatment for the sector.
The outcome of Coinbase’s investigation could have significant implications for both the crypto industry and financial regulators. If evidence emerges that federal agencies have unfairly targeted crypto companies, it could lead to legal challenges and calls for greater oversight of regulatory practices.
As Coinbase continues its investigation, industry stakeholders will be watching closely for any revelations about regulatory misconduct. Meanwhile, lawmakers and advocacy groups are likely to intensify their calls for clearer, fairer rules governing the relationship between financial institutions and crypto firms.
For now, the battle over Operation Chokepoint 2.0 is far from over. Coinbase’s latest move signals that the fight for transparency and fair treatment in the financial system is only heating up.
