Later that day, the Kansas City Fed denied Custodia’s master account application.Ī master account enables access to the Fed wholesale payment network without needing a bank to act as an intermediary. On January 27, Custodia Bank’s application to join the Federal Reserve System was rejected. ![]() “It is a well-coordinated effort to marginalize the industry and cut of its connectivity to the banking system – and it’s working.” Custodia gets rejected He said “ a new Operation Choke Point type operation” has been in force since the start of 2023 - adding that it is a deliberate attempt to stifle the crypto industry. Partner at Castle Island Ventures, Nic Carter, was the first to connect the dots. “To target entire industries deemed undesirable by putting regulatory pressure on the banks that serve them.” Instead, it was a proxy attack on industries “deemed undesirable.” “It references an Obama-era program that used the banking system as a way to essentially implement political views or legislation without having to go through the legislative process.”įormer Federal Deposit Insurance Corporation (FDIC) chair, William Isaac - who served between 19 - said Operation Chokepoint (1.0) was not about countering fraud and protecting consumers. He conceded that there had been no official confirmation of such a program, nor did he expect acknowledgment of its existence from officials. Most recently when the SEC served Coinbase a Wells Notice on March 22.īitcoin bull Anthony Pompliano described “Operation Chokepoint 2.0” as a program that bypasses laws and democratic due process to enforce political views. ![]() ![]() Recently, a spate of regulatory enforcement actions raised suspicions of a coordinated attack on the U.S. The founder of crypto-friendly Custodia Bank, Caitlin Long, said regulators would “be playing Whack-a-Mole” with problems if they continued to suppress Bitcoin ( BTC).
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