Banks and Crypto: The Unseen Pressure

In a recent move, House Republicans have put together a detailed report. It talks about how banks are being pushed to cut ties with crypto companies. They call this "Operation Choke Point 2. 0. " The report is 50 pages long. It talks about how regulators are using pressure tactics. These tactics are not formal rules. Instead, they are informal guidelines. The report says at least 30 companies have been affected. These companies were forced out of the banking system. This happened without any formal actions against them. The report points out that the Federal Reserve, FDIC, and OCC used different methods. These methods include "non-objection" letters and "pause" letters. These letters made banks think twice about working with crypto firms. The SEC also played a role. It used a "enforce first, make rules never" approach. This means they enforced rules before making them clear. The report highlights SAB 121. This is an SEC guidance that stopped banks from offering crypto custody services. The report says regulators publicly denied any bias against digital assets. But privately, they pressured banks to cut ties with crypto firms. This is similar to a program from the early 2010s. That program was called Operation Choke Point. It used regulatory and reputational pressure. It targeted banks serving certain high-risk industries. The report argues that the lack of clear rules and aggressive enforcement has hurt the digital-asset sector. It has forced legitimate American businesses to move abroad or shut down. The report includes stories from crypto firms. These firms struggled to keep bank accounts. One executive talked about repeated requests for documents. Another talked about sudden account closures. They also mentioned vague warnings from compliance officers. These warnings cited regulatory "uncertainty. " Republicans on the Committee say this environment has stifled innovation. It has driven financial activity offshore. They want Congress and the Biden administration to change these policies. They want clear guidance. They want to ensure that legitimate crypto firms can access banking services.