Operation Chokepoint 2.0: Crypto Founders Claim Financial Exclusion Amid Banking Controversy

In a dramatic turn for the U.S. crypto and tech industries, over 30 founders are accusing financial institutions of denying them banking services in what critics are calling “Operation Chokepoint 2.0.” This alleged campaign to cut off financial access to politically disfavored businesses, particularly in the cryptocurrency sector, has sparked outrage across the tech and finance worlds.

Marc Andreessen and the Podcast Revelation

The term gained public traction after Marc Andreessen, co-founder of venture capital giant Andreessen Horowitz, shed light on the issue during The Joe Rogan Experience podcast. Andreessen claimed that over 30 tech founders had been “debanked” over the last four years, drawing parallels to the Obama-era “Operation Chokepoint.” That initiative aimed to isolate high-risk industries like payday lenders and firearms dealers by pressuring banks to sever ties.

Andreessen alleged that the Biden administration has revived this tactic but with a focus on tech startups — especially those in the crypto space.

Elon Musk and Industry Giants Speak Out

The controversy escalated after Elon Musk amplified Andreessen’s comments on X (formerly Twitter), questioning whether the public fully understood the extent of financial exclusion targeting tech innovators. Musk’s concerns were echoed by Coinbase CEO Brian Armstrong, who denounced the actions as “un-American.”

Armstrong directly accused Senator Elizabeth Warren and SEC Chair Gary Gensler of orchestrating these restrictions, labeling their efforts as an attack on the crypto sector. “This is a clear attempt to stifle innovation and freedom in finance,” Armstrong declared.

Firsthand Accounts: Crypto Founders Face Banking Roadblocks

Several industry leaders shared harrowing accounts of debanking:

• Sam Kazemian, founder of Frax Finance, recalled being told by JPMorgan Chase officials in December 2022 that accounts tied to crypto wealth were being systematically closed.
• Caitlin Long, CEO of Custodia Bank, revealed her company had to sue the Federal Reserve after facing financial isolation.
• Andrew Torba, founder of Gab, claimed multiple banks terminated his accounts under pressure from federal regulators.

These experiences paint a stark picture of what critics describe as a coordinated effort to suppress the crypto industry.

Bank Closures Fuel the Fire

The collapse of several crypto-friendly banks in 2023 — including Silicon Valley Bank, Silvergate Bank, and Signature Bank — has further fueled suspicions of a deliberate attack on the sector. Venture capitalist Nic Carter described this as part of “Operation Chokepoint 2.0,” suggesting it’s an orchestrated effort to cut off crypto businesses from the financial system.

Calls for Transparency and Accountability

As allegations mount, crypto leaders are demanding greater clarity and oversight. They argue that financial exclusion undermines innovation and harms industries striving to create new solutions. Caitlin Long summed up the sentiment: “This isn’t just about crypto; it’s about fairness and access for everyone.”

With high-profile voices like Marc Andreessen, Elon Musk, and Brian Armstrong rallying behind the cause, the pressure on regulators and financial institutions to explain their actions is growing. Whether this results in policy change or further division remains to be seen, but one thing is clear: the crypto industry isn’t backing down.

What’s your take on these allegations? Is “Operation Chokepoint 2.0” real, or are these just growing pains for the crypto industry? Let us know!

Operation Chokepoint 2.0: Crypto Founders Claim Financial Exclusion Amid Banking Controversy was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.