Custodia Bank founder Caitlin Long recently criticized the White House’s meetings with crypto leaders, calling them ineffective. She dismissed the discussions as futile in addressing the real issue: the Federal Reserve's aggressive stance on crypto.
Fed's Regulatory Actions: A New Chapter in Operation Choke Point?
On August 8, 2024, the Federal Reserve took action against Customers Bank, a known supporter of the crypto industry. The Fed cited insufficient anti-money laundering (AML) practices and poor risk management as reasons for their intervention. This move has been seen by many as a continuation of Operation Choke Point 2.0, a term used to describe regulatory efforts that aim to stifle the crypto sector through financial censorship.
Tyler Winklevoss and the Crypto Reset
Tyler Winklevoss, (https://x.com/tyler/status/1821721465039024547)co-founder of the Gemini exchange, strongly criticized the Harris administration’s so-called “crypto reset” strategy. He labeled it a scam, suggesting that the administration's efforts are more about undermining the crypto industry than genuinely reforming it.
Support for Customers Bank
In response to the Fed's action, Cameron Winklevoss, also a co-founder of Gemini, expressed support for Customers Bank. In a public message, he thanked the bank for its commitment to the crypto sector and reassured them that their efforts would not be forgotten. He encouraged them to remain steadfast, despite the ongoing challenges.
The recent enforcement by the Federal Reserve against Customers Bank highlights a continued aggressive stance on the crypto industry. As debates over Operation Choke Point 2.0 and regulatory strategies unfold, the crypto community remains divided but resilient in its defense of financial innovation.