Operation Chokepoint 2.0 Exposed

For years, the crypto industry has suspected a coordinated effort to choke off banking access for digital asset firms. Now, thanks to newly released FDIC documents, we have undeniable proof that Operation Chokepoint 2.0 was real all along—despite repeated government denials.

And yet, in a surprising turn of events, the FDIC now plans to revise its guidelines to let banks engage in some crypto activities without needing prior regulatory approval. The same government that worked behind the scenes to debank the industry is suddenly pivoting toward more “crypto-friendly” policies.

What changed? And should we trust this shift?

The FDIC’s Secret War Against Crypto

• Newly released FDIC documents confirm that banks seeking to engage in crypto-related activities faced an almost universal roadblock from regulators.
• The FDIC made it clear: pursuing crypto ventures would be “extraordinarily difficult—if not impossible.”
• Banks were explicitly discouraged from providing services to crypto firms, often through vague risk assessments that pressured them to avoid the industry altogether.

This wasn’t just passive resistance, it was an active, coordinated effort to cut crypto out of the financial system.

The Smoking Gun: Direct Evidence of Regulatory Bias

• One bank was instructed not to proceed with any crypto-asset activity until the FDIC and an unnamed agency gave their blessing.
• A stablecoin issuer was blocked from securing a reserve bank account effectively preventing them from operating.
• The industry’s suspicions were validated by Coinbase Institutional Chief Legal Officer, Paul Grewal , who is now set to testify before Congress about these regulatory abuses.

For years, the government denied it. Now, the proof is in black and white.

The Sudden Policy Reversal—A Trojan Horse?

Now, in a stunning reversal, the FDIC is considering easing restrictions to allow banks to:

• Offer crypto custody services, bringing digital asset storage under traditional financial institutions.
• Explore “tokenized deposits”, which could see checking accounts moving onto blockchains.

At first glance, this looks like progress. But let’s be clear: this isn’t about empowering crypto it’s about controlling it.

Why This Shift? A Strategic Play for Control

• Regulators know that crypto isn’t going away. Rather than fighting a losing battle, they’re moving to co-opt the industry.
• By allowing banks to control crypto services, the government can track, freeze, and regulate these assets with the same tools they use for fiat.
• “Tokenized deposits” may sound innovative, but if they’re controlled by banks, they’re no different from the traditional system just with a blockchain wrapper.

The Bottom Line: Don’t Be Fooled

• Operation Chokepoint 2.0 was real. The Federal Deposit Insurance Corporation (FDIC) (FDIC’s) own documents prove it.
• This policy shift isn’t about decentralization—it’s about government-friendly centralization.
• The crypto industry needs to stay vigilant. Real adoption means freedom from government overreach, not just new ways for banks to maintain control.

The battle for financial sovereignty isn’t over. The fight has just moved to a new front. Are you paying attention?