More than 30 technology and cryptocurrency founders in the US allege that the government is pressuring banks to cut ties with blockchain and cryptocurrency-related companies. The so-called “Operation Chokepoint 2.0” is believed to be a continuation of a similar Obama administration initiative targeting industries considered high risk.
The issue gained attention after Marc Andreessen, co-founder of Andreessen Horowitz, shared his concerns on The Joe Rogan Experience podcast. Andreessen claimed that in the past four years, more than 30 tech entrepreneurs have been denied banking services for political reasons. He compared this to the original “Operation Chokepoint,” which restricted financial access to industries like payday loans and firearms. According to Andreessen, the latest version from the Biden administration specifically targets crypto companies.
High profile reactions
Tesla CEO Elon Musk echoed these claims on social media platform X and asked if people were aware of the financial exclusion affecting founders. Coinbase CEO Brian Armstrong joined the conversation, calling the alleged actions “un-American” and accusing the Biden administration of suppressing the crypto industry. Armstrong also pointed the finger at figures like Senator Elizabeth Warren and SEC Chairman Gary Gensler for supposedly pushing these efforts.
Sam Kazemian, founder of Frax Finance, shared his personal experience of “unbanking.” He claimed that in December 2022, JPMorgan Chase closed his accounts, citing instructions to cut ties with clients whose wealth came from cryptocurrencies. Kazemian suggested this was part of a broader agenda led by JPMorgan CEO Jamie Dimon.
Impact of bank closures
The situation worsened in 2023 following the collapse of several cryptocurrency-friendly banks, including Silicon Valley Bank, Silvergate Bank, and Signature Bank. These events fueled speculation that a coordinated effort was underway to isolate the crypto sector. Venture capitalist Nic Carter described this as clear evidence of “Operation Chokepoint 2.0.”
Other entrepreneurs, like Gab founder Andrew Torba, have faced similar challenges. Torba alleged that several banks closed their accounts after facing pressure from federal regulators, who allegedly used threats of audits and other enforcement measures to force these actions.
Calls for transparency
Caitlin Long, CEO of Custodia Bank, shared her struggles with similar financial constraints. His company was forced to sue the Federal Reserve to address these issues. As more industry leaders speak out, there is a growing demand for transparency and accountability from both government and financial institutions. Many are urging an end to what they perceive as politically motivated efforts to weaken the blockchain and cryptocurrency industries.
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