Tyler Winklevoss, the co-founder of Gemini, has raised alarms about the resurgence of Operation Chokepoint 2.0, citing the recent regulatory actions taken by the US Federal Reserve against Customers Bank. The Fed’s move is in response to alleged violations of various financial regulations related to digital assets, including the Bank Secrecy Act, Anti-Money Laundering laws, and Office of Foreign Assets Control (OFAC) regulations. Customers Bank has been directed to strengthen its oversight, risk management, and compliance practices within a tight 60-day timeframe.
In his analysis, Winklevoss highlighted the centralized control exerted by the Fed over the banking relationships of crypto companies. He pointed out that the enforcement action now requires Customers Bank to provide a 30-day advance notice before engaging in any new relationship with a crypto entity. This shift in decision-making power from individual banks to the Fed has significant implications for the industry, limiting the autonomy of financial institutions in determining their client base.
Expressing his concerns for the potential escalation of regulatory measures, Winklevoss cautioned that the current actions by the Biden administration might just be the beginning. He suggested that the upcoming election could see a ramping up of anti-crypto policies if Vice President Kamala Harris takes office alongside Senator Elizabeth Warren. According to Winklevoss, the regulatory landscape could become even more challenging for the industry in the coming years if stricter measures are implemented.
The looming threat of Operation Chokepoint 2.0 and the Biden-Harris administration’s stance on crypto policies could have far-reaching consequences for the industry. Winklevoss warned that continued regulatory pressure could stifle innovation, limit market access, and undermine the growth of digital assets. As the Fed tightens its grip on banking relationships with crypto companies, the future looks uncertain for businesses operating in this space.
Tyler Winklevoss’s assessment of the regulatory landscape sheds light on the challenges facing the crypto industry. The centralization of decision-making, coupled with the potential for stricter enforcement actions, poses a significant threat to the growth and development of digital assets. It remains to be seen how the industry will navigate these obstacles and find a way forward in an increasingly regulated environment.
