David Sacks vs. Operation Choke Point 2.0: Will He Save Crypto?
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David Sacks, recently appointed by Donald Trump as the new “crypto czar,” has raised concerns about the harmful effects of Operation Choke Point 2.0, a controversial regulatory effort designed to cut off banking services to cryptocurrency companies.
Could Sacks’ leadership be the turning point the struggling crypto industry needs? Everyone watches closely to see if Sacks can bring the change many believe is necessary.
Sacks Highlights Key IssuesIn a recent tweet on X (formerly Twitter), Sacks pointed to the personal cost of the initiative, stating, “There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at.”
There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at. https://t.co/IhCdyQfx0g
— David Sacks (@DavidSacks) December 7, 2024Sacks’ concerns followed comments from Chris Lane, the Chief Technology Officer of the now-defunct Silvergate Bank. Lane revealed that regulatory pressures—not market failures—forced the bank into bankruptcy.
Lane said, “FTX didn’t kill us; our regulators did,” linking Silvergate’s financial struggles to the fallout from FTX’s collapse in November 2022.
Sacks Promises to Bring Change!
As a key figure in the cryptocurrency space, Sacks has committed to investigating and exposing the actions behind Operation Choke Point 2.0. His involvement has given crypto enthusiasts and industry leaders hope, as many believe he can play a role in reducing harmful regulations.
During his campaign, Trump pledged to put an end to Operation Choke Point 2.0 to create a fairer environment for cryptocurrency companies. His appointment of Sacks signals that this stance will likely remain a priority, with many seeing Sacks as a way to shift government policy toward more crypto-friendly regulations.
Coinbase’s Push for TransparencyAmid these discussions, Coinbase is digging into claims of government bias against the crypto industry. The company recently received 23 heavily redacted letters from the Federal Deposit Insurance Corporation (FDIC), which suggest that banks were discouraged from offering crypto-related services unless given explicit guidance.
This raises the possibility that Operation Choke Point 2.0 might be larger and more far-reaching than originally thought.
.@DavidSacks is a great pick!
It's incredible to think what is possible with sharp, pro-tech, pro-business people in government. https://t.co/ub5gFikmzE
As the investigation into these practices continues, all eyes are on David Sacks to lead efforts against what many view as unfair rules targeting crypto companies. His actions could pave the way for a brighter future for the crypto industry.
It will be interesting to watch how these efforts unfold.