Trump’s Crypto Czar David Sacks to Look Into Operation Choke Point 2.0

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As a seasoned analyst with over two decades of experience in the financial sector, I find myself intrigued by the recent developments surrounding Operation Choke Point 2.0 and its impact on the crypto industry. The involvement of David Sacks, Trump’s newly appointed crypto czar, is a promising sign that the administration may finally be taking notice of the concerns raised by many in the crypto community.

David Sacks, Donald Trump’s newly appointed advisor on cryptocurrency, has now acknowledged the numerous concerns regarding Operation Choke Point 2.0. This controversial operation, designed to hamper the crypto industry by limiting access to funds, is gaining traction in mainstream discourse due to Coinbase’s release of “pause letters,” which reveal the Federal Deposit Insurance Corporation’s (FDIC) role in the ongoing Operation Choke Point 2.0.

David Sacks to ‘Look Into’ Operation Choke Point 2.0

With Operation Choke Point 2.0 becoming more widely talked about, David Sacks – recently appointed as Trump’s cryptocurrency advisor – has become involved in the issue. On the X platform, Sacks penned a message:

It’s concerning that there are numerous accounts of individuals getting harmed due to Operation Choke Point 2.0. A thorough examination is required.

As a crypto investor recalling the demise of FTX in November 2022, I can’t help but be reminded of Silvergate Bank CTO Chris Lane’s recent comments. In response to his statement about how regulators forced Silvergate into bankruptcy, it seems clear that he believes the real culprit wasn’t FTX’s collapse, but rather the actions of the regulators themselves. When FTX faced a 70% run on deposits, Silvergate managed to weather the storm. In contrast, a conventional bank would crumble under 20%. It appears that it was not FTX that brought us down, but our own regulators who orchestrated our demise.

After David Sacks’s participation, notable figures within the cryptocurrency field have expressed readiness to aid in probing the issue at hand. The cryptocurrency community holds great expectations for Sacks and his group, hoping they will address unfair practices and bring about positive change during the Biden administration.

Coinbase Releases FDIC “Pause Letters,” Files Motion

23 heavily censored “hold-up letters” from the Federal Deposit Insurance Corporation (FDIC) that Coinbase has made available to the public have provided insight into documents connected to what is known in the cryptocurrency sector as “Operation Chokepoint 2.0.” In response, Coinbase has filed a court petition today to obtain unredacted copies of these letters in a legal dispute.

In the recent proceedings of the House Financial Services Committee, I, as an analyst, have noted that Representative French Hill posited that the incoming Congress possesses the power to halt, revert, and scrutinize Operation Chokepoint 2.0.

If the Republican party controls both houses and the presidency next year, they can put a stop to, undo, and scrutinize the second iteration of Operation Choke Point.

Legitimate companies ought to enjoy banking autonomy, and the Financial Committee will persist in scrutinizing and examining any questionable actions taken by the FDIC during the 119th Congress.

— French Hill (@RepFrenchHill) December 4, 2024

In the face of opposition, the Financial Stability Oversight Council (FSOC) persists in pursuing its objectives concerning potential dangers linked to the cryptocurrency sector, specifically focusing on “concentration risks.” Recently, FSOC has zeroed in on stablecoins, expressing concern that they could jeopardize the nation’s financial security. Caitlin Long, CEO of Custodia Bank, criticized the FSOC for its negative stance towards cryptocurrencies, arguing that this perspective has led several banks to cease working with crypto asset issuers.

It’s intriguing to observe how David Sacks handles the investigation for Operation Choke Point 2.0. With faith in his abilities, Coinbase CEO Brian Armstrong expresses enthusiasm: “Sacks is an excellent choice! The potential of what can be achieved with sharp, tech-friendly, business-supportive individuals in government is astounding.

All Eyes On Senate Banking Committee

On the following Wednesday, the Senate Banking Committee is scheduled to decide on the renewal of SEC Commissioner Caroline Crenshaw’s position, who is known for her stance against cryptocurrency. If she is approved by the Senate, Crenshaw will continue serving on the commission until 2029. In the event that she is not approved, President-elect Donald Trump will select a different candidate instead.

During her term, Crenshaw has consistently stood by SEC Chairman Gary Gensler in his efforts to enact regulation, and they share a common agenda. Intriguingly, she casted a vote that rejected the proposal for Bitcoin Spot Exchange-Traded Funds (ETFs).

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2024-12-07 09:16