US Lawmakers Fight to End Crypto Banking Blacklist—Chokepoint 2.0 Under Fire

U.S. lawmakers are ramping up efforts to dismantle “Operation Chokepoint 2.0,” vowing to end regulatory overreach and restore fair banking access for the thriving crypto industry.

Lawmakers Push Back Hard Against Crypto Banking Blacklist—Crackdown Challenged

Efforts to dismantle “Operation Chokepoint 2.0” continue to gain traction, with lawmakers pushing back against alleged regulatory overreach targeting the cryptocurrency industry.

U.S. Senator Cynthia Lummis (R-WY) has emerged as a leading voice in the fight, praising the Federal Deposit Insurance Corporation (FDIC) for releasing documents that shed light on banking restrictions affecting digital asset firms. These documents, obtained through a Freedom of Information Act (FOIA) request, reveal that the FDIC sent 25 letters to banks between 2022 and 2023, advising them to pause or limit services to crypto-related businesses.

In a Feb. 5 post on social media platform X, the senator praised the FDIC for swiftly releasing documents and thanked House Financial Services Committee Chairman French Hill and President Donald Trump for their commitment to government transparency. She emphasized:

We are putting an end to Chokepoint 2.0.

The senator from Wyoming has been outspoken in her concerns that federal regulators are pressuring banks to sever ties with cryptocurrency businesses, likening the situation to the original Operation Chokepoint—a controversial initiative from the early 2010s that sought to limit banking access for certain industries deemed high-risk.

The phrase “Chokepoint 2.0” has been widely used by digital asset advocates who argue that agencies like the FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC) have discouraged banks from working with crypto firms. Critics claim such actions suppress financial innovation and force crypto companies to seek offshore banking solutions in less regulated environments.

In a post on Jan. 24, Senator Lummis reinforced her stance, stating:

As we learn the extent – and the injustices – of Chokepoint 2.0, I will be working closely with FDIC Vice Chair Travis Hill to put an end to this assault on digital assets.

The lawmaker’s remarks signal her commitment to working with regulators to address financial barriers in the crypto sector. Her ongoing advocacy suggests she will continue pushing for accountability and fair treatment of digital asset businesses. The FDIC’s release of key documents is expected to increase scrutiny of financial regulators, potentially shaping future crypto banking policies.