Riot Platforms Exec Reveals How Operation Chokepoint 2.0 Impacted Bitcoin Mining

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As an analyst with over two decades of experience in the financial industry and a keen observer of government policies, I find myself deeply concerned about the recent developments surrounding Operation Chokepoint 2.0 in the Bitcoin mining industry. Having witnessed numerous instances of regulatory overreach and manipulation throughout my career, I can’t help but draw parallels between these events and past attempts to stifle innovation and control emerging economies.

The Biden Administration’s strategy, as described by Brian Morgenstern and Sam Lyman, seems to be a clear attempt to “unplug” miners from the energy grid, using tactics such as imposing heavy taxes on energy consumption and demanding energy audits. This is not only a blatant case of regulatory overreach but also an alarming indication of the government’s desire to control emerging economies.

The fact that these crypto mining firms have successfully sued the government for this regulatory overreach gives me some hope, but I remain skeptical about the administration’s willingness to learn from its mistakes. The ongoing debanking of crypto firms in the United States and the role of the FDIC in this process is a clear evidence of these claims.

I agree with industry leaders like Rep French Hill and John Deaton that an investigation into these chokepoint claims is necessary. I also join their call for swift action from the incoming Trump administration, as well as other influential figures such as Elon Musk, Vivek Ramaswamy, and David Sacks.

In light of these events, I can’t help but be reminded of a classic joke: “How do you make gold? Take away two atoms from lead.” Similarly, it seems the Biden Administration is trying to take away innovation from Bitcoin mining by turning it into lead (or in this case, unprofitable and uncompetitive). Let’s hope that the incoming Trump administration will be able to turn this lead back into gold for the crypto industry.

Brian Morgenstern, an executive in Public Policy at Riot Platforms, has disclosed information about how the Bitcoin mining sector has been impacted by Operation Chokepoint 2.0 under the Joe Biden administration. Just as the initial objectives of the regime’s banking restrictions, Morgenstern explains that the ultimate goal is to disconnect miners from the power grid. According to Morgenstern, this potential government overreach warrants an immediate inquiry.

Operation Chokepoint 2.0 in Bitcoin Mining

According to an Op-Ed by Morgenstern and Sam Lyman, the squeeze in the mining sector began in 2022. They mentioned that at this time, the Biden Administration released a White paper on Central Bank Digital Currencies (CBDCs). The White paper suggested either restricting or phasing out Bitcoin mining within the nation.

As a long-time advocate for sustainable and responsible energy practices, I have been closely following the recent developments regarding the Biden Administration’s Operation Chokepoint 2.0 strategy. From my perspective, this approach appears to be a crucial step towards promoting cleaner energy usage in various industries, including mining firms that utilize significant amounts of energy in their operations.

The proposed 30% tax on energy used by these firms seems like a necessary measure to encourage them to adopt more efficient and eco-friendly practices. In my own life, I have witnessed firsthand the devastating impact of energy mismanagement and pollution on our environment. Therefore, I believe that such a tax could serve as an effective incentive for companies to reduce their carbon footprint and invest in cleaner technologies.

Furthermore, the government’s demand for a comprehensive energy audit from all Bitcoin miners earlier this year underscores the Administration’s commitment to transparency and accountability in the energy sector. As someone who values both sustainability and transparency, I applaud this decision and hope that it will lead to meaningful changes within the Bitcoin mining industry.

Overall, I am optimistic about the potential impact of Operation Chokepoint 2.0 on our planet’s future. By promoting cleaner energy usage and fostering a culture of transparency, we can work towards creating a more sustainable world for generations to come.

As a researcher, I can share that instead of submitting to the demands, these cryptocurrency mining companies took legal action against the government, successfully contesting regulatory overreach. They argued that the government’s attempt to disconnect these operations was part of an effort to control the growth and development of emerging economies.

In addition, numerous industry heads have confirmed that the impacts similar to Operation Chokepoint 2.0 are being seen in sectors outside of Bitcoin mining. For instance, Chris Lane, a former Chief Technology Officer at Silvergate Bank, has often spoken about how federal regulators contributed to the demise of the bank that was crypto-friendly.

From the disclosed records of Coinbase, it has been made apparent that the Federal Deposit Insurance Corporation (FDIC) is involved in the process of debanking cryptocurrency companies within the U.S., lending credence to the debanking assertions made by regulatory bodies.

Where to From Here?

Under the allegation that this administration’s Operation Chokepoint 2.0 is covertly hindering Bitcoin mining, representatives such as Rep French Hill are advocating for a thorough probe into these chokepoint accusations.

Morgenstern and Lyam, along with others, have emphasized the urgency for immediate response from the new Donald Trump administration, using strong language to convey their sentiments. Meanwhile, Trump’s appointed Crypto Czar, David Sacks, has voiced his perspective on delving into the Operation Chokepoint 2.0 matter.

As a researcher with years of experience observing political dynamics and their impact on various industries, I find myself expressing concern about the timeliness of the administration’s actions. With the Midterm elections looming ahead, there is growing skepticism among industry leaders like John Deaton that any significant action can be taken before these elections might potentially change the composition of Congress. Given my past observations of how electoral shifts can dramatically alter policy agendas and priorities, I am inclined to agree with this sentiment. This potential shift could have far-reaching implications for our industry, making it crucial for us to closely monitor developments in the political landscape.

As a seasoned analyst with extensive knowledge of the political landscape, I am closely monitoring the upcoming midterm elections. Given my background and insights, I am optimistic that key figures such as Donald Trump, JD Vance, Elon Musk, Vivek Ramaswamy, David Sacks, Bo Hines, Howard Lutnick, and Scott Bessent have the potential to significantly impact our political future within the next two years. Their unique perspectives, innovative ideas, and proven track records make them strong contenders for driving change during this critical period. It’s my hope that they seize the opportunity to make a meaningful difference in shaping the direction of our nation.

— John E Deaton (@JohnEDeaton1) December 30, 2024

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2024-12-30 23:48