Python Politics Part 1: The US Government's Slow Squeeze on Crypto via the Banking System

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 10 February 2023

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

Operation Choke Point was an Obama-era initiative that put political pressure on banks and financial institutions to deny service to out-of-favor industries. Something similar is happening again with intense pressure being exerted for banks not to service the crypto industry. On this first part of a two-episode special, NLW looks at what’s happening, as well as the key recent history of the Office of the Comptroller of the Currency, the U.S.’ main banking regulator. CORRECTION NOTE: At the 4:18 mark, NLW states: “At present there are two outstanding applications for licenses to operate national trust banks from Anchorage and Paxos, and these applications appear likely to be rejected by the OCC.” This was a mis-statement. Anchorage Digital is the only operational OCC-chartered digital asset bank, with their charter was approved by the OCC in January 2021. Paxos and Protego are the outstanding applications. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26-28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Foothill Blvd” by Sam Barsh. Image credit: Lusky/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	you'll notice something was missing from that list of actions, which changed the landscape for
0:03.7	crypto banking. There was no legislation passed. There was no public consultation. For most of the
0:09.3	actions, there was no due process whatsoever and nowhere to appeal the decisions. Government
0:14.2	agencies simply decided to lean on the banking sector in an attempt to get them to shut the
0:19.2	crypto industry out.
0:25.0	Welcome back to The Breakdown with me, NLW.
0:31.0	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:34.5	The breakdown is produced and distributed by CoinDesk.
0:42.3	What's going on, guys? It is Thursday, February 9th, and today we are talking about the U.S.
0:45.2	government's slow squeeze on crypto via banks.
0:49.4	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it,
0:52.8	give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:58.3	come join us on the Breakers Discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.
1:04.9	There is a famous if apocryphal phrase, first they ignore you, then they laugh at you, then they fight you, and then you win. If you've been paying attention to crypto over the last few weeks,
1:10.2	particularly the signals being sent to the last few weeks, particularly the signals
1:11.3	being sent to the industry from regulators, you may have gotten the distinct idea that we've
1:15.7	entered into the Then They Fight You stage.
1:19.3	On Tuesday, February 7th, Castle Island Ventures, Nick Carter tweeted,
1:22.5	I don't want to alarm, but since the turn of the year, a new Operation chokepoint
1:27.0	type operation
1:27.7	began targeting the crypto space in the U.S. It is a well-coordinated effort to marginalize the
1:33.0	industry and cut off its connectivity to the banking system, and it's working. Then last night,
	...

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