Bitcoin Advocates Debate US Government’s Alleged Mission to Eliminate Crypto Access – Bitcoin News

Since the collapse of three U.S. banks friendly to cryptocurrency companies and the U.S. government’s insistence that cryptoassets are “risky investments,” many speculators believe that bureaucrats are intentionally closing off access to cryptocurrencies. Some refer to the US government’s recent enforcement as “Operation Chokepoint”, a mission aimed at eliminating access to the crypto ecosystem in the United States.

Bank closures raise concerns about US government stance on crypto

In recent weeks, crypto advocates have been debating US government enforcement actions against digital currency projects and businesses such as crypto 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’s closure, onlookers were confused as to why it happened. Adding to the speculation, Signature board member and former politician Barney Frank said regulators shut down Signature to send an “anti-crypto” message.

Operation Chokepoint 2.0 is the next big scandal all other independent commentators will miss. The same people who told you to “lock up or you’re a Wall Street shill” are NOT the people you should be listening to now. These “bank collapses” were targeted crypto assassinations.

— Kim Iversen (@KimIversenShow) March 20, 2023

Regulators from New York and the Federal Deposit Insurance Corporation (FDIC) insisted that the shutdown had nothing to do with crypto. But when Signature’s assets and bank branches were acquired, new owner Flagstar Bank chose not to buy Signature’s digital currency business. US Senator Elizabeth Warren of Massachusetts blamed crypto-risk for Silvergate’s liquidation, and many other US politicians joined her chorus. The White House also published its financial report and downplayed cryptoassets, noting that they do not meet the characteristics of good money and have failed in their purported goals.

Operation Chokepoint 2.0. pic.twitter.com/eoVui87pgu

— Radar🚨 (@RadarHits) March 20, 2023

All of this and enforcement by the US Securities and Exchange Commission has led people to believe that the US government wants to remove crypto companies. Many crypto devotees call the mission “Operation Chokepoint.” March 13, bitcoiner Nic Carter tweeted about the alleged mission and said he warned about the chokepoint a month ago. “I didn’t think in a million years they would go 100 times further and actually take down the top three crypto-facing banks,” Carter said. “It is fantastic. And this was not an accident. It was a demolition.” He also wrote an extensive blog post on the subject at Pirate Wires. The post describes “the Biden administration’s coordinated, ongoing effort across virtually every US financial regulator to deny crypto firms access to banking services.”

To close the exits

Bitcoin lawyer Alistair Milne so: “The US introducing capital controls (‘Operation Chokepoint’) means that they are afraid of the dominance of the USD. The [U.S. dollar] being eroded from [three] Pages: Bitcoin’s Permanent Supply Safe Harbor, Inability/Unwillingness To Stop Printing Trillions (MMT), [and] BRICS Scaling Beyond USD Trade.” Venture capitalist Balaji Srinivasan recently said that hyperinflation is happening now and believes bitcoin could reach $1 million per coin in 90 days. Srinivasan also agrees that access to crypto is closing.

“Fed is closing the exits,” Srinivasan meant, referring to Kraken’s recent decision to pause ACH transfers. “They can’t do it globally. There are now enough banks outside the Fed’s control. But if you are within the broad vest… you may only have weeks or even days. Buy bitcoin and get your coins from exchanges.” In another tweet, Srinivasan stressed that people should go to crypto-friendly destinations as it is possible bitcoin could be banned like gold was in the United States in the 1930s.

They are going to try to limit/block the exit ramps of bitcoin exchanges as the banking system is run.

It begins.

— Dylan LeClair 🟠 (@DylanLeClair_) March 22, 2023

Many others share Srinivasan’s view and that of Operation Chokepoint believers. The Twitter account is called Stack Hodler asked: “What good is bitcoin if they close the on and off 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 energy out of the system BEFORE they degrade/confiscate your entire savings. When you have your money energy in a neutral reserve, you may need to physically move to a friendly jurisdiction to take advantage of it. But at least you have the option.”

Bitcoin supporter Michael Ruiz wrote: “Bitcoin circular economy or bust. On and off ramps are closing,” shares a screenshot of the Kraken ACH news. However, not everyone is as enthusiastic as some bitcoiners who believe bitcoin will provide better alternatives. 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 created a circular economy. Furthermore, people have asked Srinivasan and others about the government banning exits and what people should do if it happens.

“So we’re all buying bitcoin and getting it from exchanges, if there’s no on/off ramps, what do we do? What’s the future from here? How do we trade, how do we use it?” a person asked Srinivasan in his Twitter thread.

What do you think of the US government’s actions against crypto companies and assets? Do you think they are intentionally closing access to cryptocurrencies? Share your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.