Crypto Firms and Lawmakers Probe Banking Restrictions in Operation Chokepoint 2.0

Key Points:

• Paul Grewal, Coinbase’s Chief Legal Officer (CLO), will testify in a Senate hearing about regulatory actions against crypto.
• Executives from Anchorage Digital and MARA Holdings will also take the stand.
• Lawmakers want to know if federal regulators unfairly pressured banks to cut ties with crypto companies.

What’s Operation Chokepoint 2.0?

There are claims that U.S. regulators have been quietly pressuring banks to stop working with crypto firms. Lawmakers are now digging into whether federal agencies intentionally blocked crypto businesses from accessing financial services.

Who’s Testifying?

The hearing is scheduled for February 6 and will feature:

• Paul Grewal (Coinbase CLO) – Expected to reveal how crypto companies have been targeted by regulators.
• Fred Thiel (MARA Holdings CEO) – Likely to share how banking restrictions impact Bitcoin mining and other crypto businesses.
• Austin Campbell (WSPN CEO) – Will testify before the House Financial Services Committee.
• Nathan McCauley (Anchorage Digital CEO) – Expected to explain how banking limitations affected his company.
• Other notable speakers include legal expert Stephen Gannon, banker Mike Ring, and economist Aaron Klein.

I’m testifying at the @FinancialCmte’s oversight hearing looking into the past clandestine and undemocratic campaign to cut off crypto from banking. On behalf of @Coinbase, I’m proud to help shed light on the unfair treatment of our industry and thank @FinancialCmte and… pic.twitter.com/TDIVu1cdW1

— paulgrewal.eth (@iampaulgrewal) February 3, 2025

Crypto Industry Pushes Back

For months, crypto firms have argued that financial regulators have deliberately cut them off from banking services. Coinbase recently got its hands on internal FDIC documents suggesting banks were told to avoid crypto. Anchorage Digital and other firms report similar experiences.

Political Promises & What’s Next

Lawmakers have promised to investigate whether crypto businesses have been unfairly targeted:

• Donald Trump pledged to end anti-crypto policies if re-elected.
• Rep. French Hill promised to look into the issue, launching a formal inquiry in January.
• David Sacks, the newly appointed Crypto & AI Czar, is leading efforts to uncover regulatory overreach.

The hearing is shaping up to be a big moment for the crypto industry as it fights for fair treatment.