David Sacks, the newly appointed crypto czar in Donald Trump’s administration, vows to tackle Operation Chokepoint 2.0. In an X post on December 7, 2024, Sacks emphasized the necessity to address the increasing number of issues caused by the government’s Operation Chokepoint 2.0. The term refers to the government’s efforts to cut off crypto platforms’ financial ties with banking institutions.
Yesterday, Trump announced David Sacks, the former PayPal Chief Operating Officer, as the US’ first-ever White House AI and Crypto Czar. Trump’s pick aligned with his crypto-friendly policies as he stated, “He [Sacks] will work on a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the U.S.” Sacks’ deep understanding of technology and innovation sparks optimism in the crypto community.
In his recent X post, Sacks highlighted multiple instances that inflicted harm to individuals by Chokepoint 2.0. This highlights the emergency of reforming the policies as crypto businesses face increasing hostility from banks. Reacting to Sacks’ post, Wayne Vaughan, co-founder and CEO of Tierion, commented, “The US government shouldn’t weaponize the banking system against its political opponents and people that are deemed otherwise undesirable.”
Coinbase Exec Predicts Swift Crypto Laws Under TrumpSacks’ message came in response to ex-Silvergate CEO Chris Lane’s view on Chokepoint 2.0’s entry into the mainstream discussion. After the fall of the once-crypto giant FTX, the regulators reportedly insisted the bank limit its ability to hold US dollar deposits for digital asset clients. Attributing Silvergate’s fall to the regulator’s aggressive approach, he stated that the bank was “shot in the back by our regulators.”
While the government pressures banks to sever ties with crypto companies, Ripple CTO David Schwartz calls this the authority’s indirect regulation. Coinbase CEO Brian Armstrong has previously argued that government agencies like the FDIC have blocked crypto platforms’ access to financial institutions.
