Context
Operation Chokepoint was an informal policy carried out by US financial regulators in the mid-2010s. Back then, banks under regulatory pressure massively refused to serve entire business segments, including online casinos, microfinance organizations and other 'risky' industries.
A few years later, a similar situation repeated in the cryptocurrency industry - banks began to refuse to serve crypto companies, fearing sanctions from regulators. This informal process was dubbed 'Operation Chokepoint 2.0'.
Fed's Proposal
Now the US Federal Reserve is seeking feedback from market participants on a proposal that could put an end to this process. The regulator proposes to introduce clear criteria under which banks can refuse to serve clients, in order to avoid unjustified blocking of entire industries.
Expert opinion
This Fed proposal is an important step towards regulating the cryptocurrency industry within the legal framework. The lack of clear criteria for refusing service created legal uncertainty and undermined the trust of market participants. Now, if the proposal is approved, banks will not be able to unreasonably block the accounts of crypto companies. This should contribute to the healthy development of the industry in the US.