The Cedar Innovation Foundation has expressed concerns over federal government efforts to limit banking access for individuals and companies involved with digital assets, labeling these actions as "un-American" and calling for Congressional scrutiny. This statement was shared in a January 22 post on X.
According to the Alternative Investment Management Association (AIMA), a survey of 160 crypto hedge fund firms revealed that 75% reported difficulties in accessing or expanding banking services for their funds. Of those firms warned about potential termination of their banking relationships, 98% said they were not provided with clear reasons for the termination. AIMA described this pattern of debanking within the U.S. crypto industry as "Operation Chokepoint 2.0."
U.S. Senator Cynthia Lummis has identified oversight of federal financial regulators as one of her top priorities in her role as chair of the new Senate panel on digital assets. She emphasized the importance of preventing "Operation Chokepoint 2.0" from occurring again.
Ripple CEO Brad Garlinghouse reported being affected by Operation Chokepoint 2.0, according to CCN. Garlinghouse said he received a notice from Citibank, where he had been a customer for 25 years, informing him that his account would be closed within five days. Members of the crypto community suspect that Operation Chokepoint 2.0 results from federal pressure on banks to cut ties with the digital asset sector, although there is optimism among advocates that the new administration will reverse this trend.
The Cedar Innovation Foundation offers research and educational resources related to blockchain and cryptocurrency innovation to policymakers, media, and other stakeholders, as noted on its website. The organization seeks to underscore the economic, social, and national significance of blockchain technology.
