Since the collapse of three crypto-friendly US banks and the US government’s insistence that crypto assets are “risky investments”, many speculators believe that bureaucrats are deliberately shutting down access to cryptocurrencies. The recent US government enforcement is being referred to by some as “Operation Chokepoint”, a mission aimed at removing access to the crypto ecosystem in the United States.
Bank Closures Raise Concerns About the US Government’s Stance on Crypto
In recent weeks, cryptocurrency advocates have discussed the US government’s enforcement actions towards digital currency projects and businesses such as cryptocurrency exchanges. The collapse of Silvergate Bank, Silicon Valley Bank, and Signature Bank has led many to believe that the US government is shutting down access to crypto services. For example, with Signature Bank closing, viewers were confused as to why it happened. Adding to the speculation, Signature board member and former politician Barney Frank said that regulators shut Signature down to send an “anti-crypto” message.
Operation Chokepoint 2.0 is the next big scandal that every other independent commentator will miss. The same people who told you “shut down or you’re a Wall Street shill” are NOT the people you need to listen to now. These bank “collapses” were targeted crypto-murders.
—Kim Iversen (@KimIversenShow) March 20, 2023
New York regulators and the Federal Deposit Insurance Corporation (FDIC) insisted that the shutdown had nothing to do with cryptocurrencies. However, when Signature’s bank branches and assets were acquired, the new owner Flagstar Bank chose not to acquire Signature’s digital currency business. US Senator Elizabeth Warren of Massachusetts blamed crypto risk for the Silvergate liquidation and many other US politicians joined her chorus. The White House also released its economic report and downplayed crypto assets, noting that they do not meet the properties of sound money and have failed in their supposed goals.
Operation Chokepoint 2.0. pic.twitter.com/eoVui87pgu
—Radar🚨 (@RadarHits) March 20, 2023
All of this and the US Securities and Exchange Commission enforcement have led people to believe that the US government wants to drive crypto companies out. Many cryptocurrency advocates call the mission “bottleneck operation.” On March 13, bitcoiner Nic Carter tweeted about the alleged mission and said he warned of a bottleneck a month ago. “I didn’t think in a million years that they would go 100 times as far and take down the top three crypto banks,” Carter said. “Is awesome. And this was not an accident. It was a demolition.” He also wrote a complete blog post on the subject at Pirate Wires. The post details “the Biden administration’s ongoing and coordinated effort across virtually every US financial regulator to deny cryptocurrency companies access to banking services.”
closing the exits
Bitcoin Advocate Alistair Milne saying: “The US imposition of capital controls (‘Operation Chokepoint’) means they fear for USD dominance. The (US dollar) is eroding from (three) sides: Bitcoin’s safe haven of fixed supply, the inability/unwillingness to stop printing trillions (MMT), (and) the BRICS scaling trade out of the USD.” Venture capitalist Balaji Srinivasan recently said that hyperinflation is happening now and he believes that Bitcoin can reach $1 million per coin in 90 days.Srinivasan also agrees that access to cryptocurrencies is being shut down.
“The Federal Reserve is closing the exits”, Srinivasan opined, referring to Kraken’s recent decision to pause ACH transfers. “They can’t do it globally. Now there are enough banks outside the control of the Fed. But if you are in the wide west… You may only have weeks or even days. Buy bitcoins and get your coins from exchanges.” In another tweet, Srinivasan stressed that people should go to crypto destinations as Bitcoin may be outlawed like gold He was in the United States in the 1930s.
They are going to try to limit/block off-ramps to bitcoin exchanges as the banking system runs.
It is starting.
— Dylan LeClair 🟠 (@DylanLeClair_) March 22, 2023
Many others share Srinivasan’s opinion and that of the Operation Chokepoint believers. The Twitter account called Stack Hodler asked: “What good is bitcoin if they close the entrance and exit ramps?” The individual went on to answer his own question: “Closing the ramps means trapping you in the room with $31.6 trillion worth of debt. Get your money power out of the system BEFORE your life savings are downgraded/seized. Once you have your money energy in a neutral reserve asset, you may need to physically move to a friendly jurisdiction to benefit from it. But at least you will have the option.
Bitcoin Supporter Michael Ruiz wrote: “Bitcoin circular economy or bankruptcy. On and off ramps are closing,” sharing a screenshot from Kraken ACH news. However, not everyone is as enthusiastic as some bitcoiners who believe that bitcoin will provide better options. With the government cracking down and regulators in full force, some are skeptical about unfinished scaling solutions and the fact that bitcoin adoption has not produced a circular economy. Also, people have questioned Srinivasan and others about the government banning exit ramps and what people should do if that happens.
“So we all buy bitcoin and get it off exchanges, if there are no on-ramps and off-ramps, what do we do? What is the future from here? How do we trade, how do we spend it? a person asked Srinivasan on his Twitter thread.
What do you think of the US government’s actions towards crypto businesses and assets? Do you think they are deliberately closing access to cryptocurrencies? Share your thoughts on this topic in the comments section below.
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