US Politics |OT|

[SvennoJ]

Trump touts shift away from cryptocurrency regulation

At a White House cryptocurrency summit, Trump has signalled a shift away from the regulations of his predecessor Joe Biden when it comes to digital currencies.

Advocates in the cryptocurrency industry have long accused Biden of over-regulation, in a campaign they have informally dubbed “Operation Choke Point 2.0”.

That name is a reference to a previous initiative under President Barack Obama to investigate banks that are suspected of fraud or other misdealings.

Since taking office, Trump has moved to close investigations into at least seven financial firms with dealings in digital currency. He has also named a “crypto tsar”, David Sacks, to build up the government’s investments.

On Friday, Trump slammed Biden for Operation Choke Point 2.0 – though no such initiative was ever opened under Biden’s administration.

“They strong-armed banks into closing the accounts of crypto businesses and entrepreneurs, effectively blocking some money transfers to and from exchanges, and they weaponised government against the entire industry,” Trump said.

“I know that feeling also, maybe better than you do. All of that will soon be over, and we are ending Operation Choke Point 2.0.”

At a hearing for the House Committee on Financial Services last month, Representative Al Green described Operation Choke Point 2.0 as a “fake programme, never initiated by the Biden administration”.

“The Biden administration did not prohibit banks from dealing with cryptocurrency companies,” Green said. “Regulators asking banks to consider the risks associated with the cryptocurrency industry does not amount to de-banking.”