Operation Chokepoint 2.0 Concludes as Fed Withdraws Crypto Restrictions: A Long-Overdue Institutional Shift
The article discusses the end of "Operation Chokepoint 2.0," a coordinated U.S. regulatory effort to restrict banking services for the cryptocurrency industry in 2023. Internal FDIC documents confirmed this de-banking campaign, which increased regulatory friction and limited crypto firms' access to banking services following the collapse of several banks. A key tool was a Federal Reserve policy that classified crypto-related activities—such as stablecoin services, on-chain settlement, and crypto custody—as "high-risk innovation," subjecting them to additional scrutiny.
Recently, the Federal Reserve officially revoked this restrictive policy, signaling a shift in regulatory approach. This change is not due to a sudden pro-crypto stance but reflects the growing recognition that isolating the industry is increasingly impractical. Stablecoin adoption has expanded, on-chain dollar settlements have become more frequent, and capital flows have continued outside the traditional banking system, creating potential systemic risks.
The case of Custodia Bank, which was denied a master account and access to the dollar clearing system, exemplifies the impact of these policies. Custodia has since sought a rehearing, and its legal challenge is seen as a test of whether regulators are moving from a default rejection to a compliance-based准入 approach.
Concurrently, the SEC issued guidance on how broker-dealers should custody crypto assets, detailing requirements for private key management, blockchain risk assessment, and response to extreme events like 51% attacks. Other agencies, like the OCC, have also expanded recognition of stablecoins and custody services.
The overall trend indicates a regulatory pivot from blocking crypto to managing it structurally. Activities are being modularized into manageable components—settlement, custody, clearing, and risk control—rather than being treated as a monolithic high-risk category. The shift acknowledges that on-chain dollar flows are now a integral part of global finance, and regulators must engage with them rather than remain absent. The real impact will be seen in who is permitted to participate in the next phase of the dollar settlement and custody system.
marsbit12/19 11:30
