Cardano Founder Charles Hoskinson Breaks Silence On Operation Chokepoint 2.0

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As a seasoned analyst with years of experience in the financial industry, I find Charles Hoskinson’s stance on Operation Chokepoint 2.0 both compelling and alarming. Having closely observed the evolution of the cryptocurrency market, I can attest to its resilience and potential, but also to the challenges it faces, particularly when it comes to regulatory hurdles.

Charles Hoskinson, founder of Cardano, has recently spoken out about Operation Chokepoint 2.0, describing it as a widespread, focused assault on the cryptocurrency sector. He stated that the repercussions have resulted in long-term financial and psychological harm, and urged the industry to unite and advocate for laws prohibiting such actions from recurring in the future.

Cardano Founder Stance on Operation Chokepoint 2.0

In his latest post on X (which used to be Twitter), Charles Hoskinson, founder of Cardano, expressed worries about the international repercussions of Operation Chokepoint 2.0. He stated that this campaign represents a strategic approach aimed at intimidating, imposing fines, conducting audits, and refusing services to cryptocurrency ventures on a global scale. These views echo those of John Deaton, an advocate for digital currencies, who believes the Trump administration should launch an investigation into Operation Chokepoint 2.0.

The international impact of Operation Chokepoint 2.0 has been significant. Many individuals have chosen to ignore or downplay its severity for political purposes, claiming that it is less harmful than the industry suggests.

On a global scale, the situation has become increasingly severe for numerous businesses. They have been subjected to various forms of harassment, fines, audits, and even expulsion from platforms. This predicament has…

— Charles Hoskinson (@IOHK_Charles) November 30, 2024

He said that the operation went beyond the United States, which made the banks move to debank cryptocurrency entities out of fear of losing their correspondent relationships with American banks.

Charles Hoskinson additionally highlighted the potential impact on businesses and individuals within the cryptocurrency sector, referring to both financial and emotional distress. He urged the industry to seize this opportunity to advocate for legislation preventing similar actions in the future. In his words, “We have a limited timeframe to pass a law,” emphasizing the importance of prompt collaboration.

Industry Leaders Speak Out on Debanking Crisis

The remarks by the Cardano founder Charles Hoskinson echoes the sentiments of many in the industry as they criticize Operation Chokepoint 2.0. An entrepreneur from Barbados – Gabriel Abed told his story about how First Citizens Caribbean Bank closed his account after he received a deposit from Kraken related to Bitcoin. 

He mentioned that the bank shut down his account due to worries about his U.S. correspondent ties, despite him having banked with them for a decade.

Faryar Shirzad, Coinbase’s Chief Policy Officer, presented comparable instances from other industry players, using Nic Carter’s research as a reference. Shirzad emphasized the necessity for strengthening public disclosure and upholding the rule of law in relation to government agency actions. Moreover, he highlighted the significance of monitoring banks to prevent future politically motivated campaigns.

Ripple CTO and Others Condemn Indirect Regulation

In addition to the conversation, Ripple’s Chief Technology Officer, David Schwartz, contributed his thoughts on debanking, explaining it as a subtle form of regulation. As Schwartz points out, such actions infringe upon fundamental legal principles including fair treatment (due process), freedom of expression, and prohibitions against unjust searches.

As a responsible cryptocurrency investor, I find it more practical to encourage banks to discontinue services for questionable entities, rather than making such business activities illegal. I urge our government to employ clear, open, and lawful strategies when dealing with this issue.

As an analyst, I’ve noticed a concerning trend where high-profile figures in the tech industry, particularly those in the cryptocurrency sector, have experienced instances of debanking. For instance, Sam Kazemian, founder of Frax Finance, was debanked by JPMorgan Chase towards the end of 2022. Similarly, Coinbase CEO Brian Armstrong has made Freedom of Information Act (FOIA) requests to uncover the degree of government intervention in this matter. Armstrong labeled these actions as unethical and alleged that influential figures like Senator Elizabeth Warren and SEC Chairman Gary Gensler played significant roles in driving this campaign.

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2024-11-30 21:52