US Congressman Byron Donalds criticized the country’s regulatory agencies on April 12 at the NFT.NYC 2023 conference in New York. According to Donalds, agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and others are being used to trigger “Operation Choke Point 2.0” by limiting crypto firms’ access to banking services.

Operation Choke Point 2.0 describes the alleged coordinated effort by the US government to discourage banks from working with crypto companies under the guise of ensuring security and stability. Cryptocurrency industry commentators believe that government attempts to restrict access to the cryptocurrency sector have intensified in 2023.

“What I have seen in my short time in Congress is that nothing is a coincidence with the government agency,” the lawmaker said during a keynote address, referring to the recent US government crackdown on cryptocurrency. “They’re talking across lines a lot more than they used to. They’re finding various ways to squeeze out the result they want.”

Along with efforts to limit the banking system’s exposure to cryptocurrencies, Donalds believes the Federal Reserve is “laying the groundwork for a CBDC,” or central bank digital currency, with recent enforcement actions as part of plans for a digital dollar.

US Congressman Byron Donalds and Marc Beckman at NFT.NYC 2023

The Florida congressman also noted that the US government does not have enough knowledge about the crypto industry to properly regulate it and, through its agencies, relies on a “100-year legacy framework” to create rules and regulations for cryptocurrency. today’s needs. “To put ourselves in lay terms, […] This will be like asking a sixth-grade basketball player to officiate in the NBA Finals,” he said before urging an updated regulatory environment for digital assets.

Donalds also called SEC Chairman Gary Gensler “a very arrogant individual,” stating that “he thinks he’s the smartest person in every room.” Donald continued:

“Old Washington, which is basically today’s Washington, loves to have the alphabet soup agencies […] They are all relics from a time when you had to fax before fax machines. That’s when regulatory agencies were built. Old Washington, like everyone else, doesn’t like to move on from what they created.”

According to the congressman, helping regulators understand the nuances of digital assets, blockchain, and cryptocurrencies in general is necessary for a better cryptocurrency environment in the country.

Authorities in the United States appear to have resurrected previous enforcement tactics to place restrictions on cryptocurrency companies and the banks that serve them. The alleged strategy involves isolating the traditional financial system from the crypto market by relying on “multiple agencies to discourage banks from dealing with crypto companies,” with the aim of driving crypto companies “completely unbanked,” sources told Cointelegraph earlier. February. .

Recent reports reveal that the US arm of global crypto exchange Binance has been facing challenges establishing a new banking partner to serve as a fiat on-ramp and off-ramp for its clients in the country. The recent failures of Silvergate and Signature Bank left Binance.US without banking services, relying on intermediary banks to store funds on its behalf.

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This post ‘Nothing is a fluke with the government,’ US legislator says of Operation Choke Point 2.0

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