The attack on crypto projects is sanctioned from the very top of the Biden administration, a source who didn’t want to be named has said.
The Biden Administration Sanctioned The Attack On Crypto
Talking to crypto podcaster Tony Edwards, host of “Thinking Crypto,” the source said the operation codename Chokepoint 2.0 expressly targets cryptocurrency projects, most of which are rooted in the United States and continue to offer citizens access to various products.
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I spoke to a source who cannot be named and they gave me insight into the attack on #Crypto aka Operation Chokepoint 2.0. This person worked in Gov and now in the crypto industry.
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— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) February 14, 2023
The source, who previously worked in the government before branching out to crypto, said leaders approved the crypto attack in effect in the United States.
The “negative” attitude from the Biden administration stems from, among others, Janet Yellen, the Secretary of the Treasury, who is known to be against crypto and Bitcoin, and Gary Gensler, the head of the Securities and Exchange Commission (SEC).
For this reason, top companies, such as crypto exchange Kraken, Binance, and others, have been under pressure. The crypto market has ignored these attacks for the time being, as reflected by the price action of Bitcoin and other cryptocurrencies.
Reportedly, Gary wants more power to be given to the SEC. Furthermore, talk of the Federal Reserve eventually issuing a stablecoin has come into the picture. The source said that projects issuing stablecoins, including Paxos and Circle, undermine the Fed and the broader banking industry since it makes money control challenging. Stablecoins, it is said, “won’t usurp the digital dollar.”
The vigor demonstrated by officials from the Securities and Exchange Commission (SEC), the Commodity Futures Exchange Commission (CFTC), and various agencies, including the New York Department of Financial Services (NYDFS), is because they know there “will be no consequences, at least for now,” the source claimed.
SEC Worrying Crackdown On Cryptocurrency Projects
The SEC has been cracking down on various cryptocurrency projects, claiming that they breached regulations in the United States and are actively offering unregistered securities.
Ripple Inc., whose officials, including Bradley Garlinghouse, were earlier accused of raising $1.3 billion from selling XRP, which the SEC claims is an unregistered security.
In recent weeks, the SEC settled with Kraken, a cryptocurrency exchange, for $30 million with an agreement that they had to close down their crypto as a staking service in the United States.
The agency also won a protracted case against LBRY, a file-sharing and payment network. A District Court in New Hampshire agreed with the SEC that LBRY sold unregistered securities when they issued LBC to users. As a result, the SEC had the right to give a permanent injection against the sale of the project’s token while also asking for disgorgement for all fees received with interest.
Paxos, the firm behind the Binance branded stablecoin BUSD, also received a Wells notice from the SEC. Gary Gensler and his team are convinced BUSD is an unregistered security. The NYDFS also requested them not to issue any new tokens.
