Fred Thiel, CEO of Bitcoin mining firm Marathon Digital Holdings (MARA), has expressed concerns regarding the treatment of the U.S. digital asset industry. He said that it has been targeted in a discriminatory manner, which he believes could undermine the United States' position as a global leader in technology and innovation. Thiel made these remarks during a hearing on February 6.
"Our nation has not only witnessed but led the development of transformative technologies like the internet, personal computers, and now artificial intelligence," said Thiel. "Blockchain technology and digital assets represent yet another frontier of auspicious change that is already revolutionizing our daily lives. Yet, despite the positive impact and promise of this technology, it is undeniable that the digital asset industry has been treated differently – singled out and subjected to unprecedented actions that threaten to stifle America's leadership in innovation. Such discriminatory practices contradict our nation's ethos of technological advancement and pose significant risks to our economic competitiveness and national security."
According to Thiel, the U.S. crypto industry has suffered due to "opaque, behind-the-scenes financial exclusion practices" that occurred without adequate oversight or scrutiny. This situation, he said, has resulted in numerous economic opportunities moving offshore. In his testimony, Thiel alleged that major banks and other financial services providers compelled individuals and firms associated with digital assets to close their accounts under what he referred to as "Operation Choke Point 2.0." He further claimed that some digital asset firms received little notice before account closures and were not given substantial reasons for these actions. Thiel argued that banks and payment processors were effectively "deciding which industries can exist and grow within the U.S. economy," posing threats to job creation, innovation, technological advancement, and economic growth.
Members of the cryptocurrency community have speculated that regulatory actions taken against Binance in 2023 were part of Operation Choke Point 2.0, according to Sygna, an anti-money laundering compliance firm. Sygna described Binance as one of the "most well-known and trusted cryptocurrency exchanges in the world." Industry insiders perceived regulators' actions towards Binance as an attempt to push the exchange out of the U.S. market.
Thiel joined MARA as lead director in 2018, according to LinkedIn. He also serves as chairman of the board at Oden Technologies and is a general partner at Navigate Ventures.
