Bitcoin prices peaked at $24,000 last month, up from around $16,000 at the start of the year. Ethereum prices have seen similar volatility as the U.S. rolled out its much-anticipated cryptocurrency roadmap.
Now, the Biden administration is accused of trying to “quietly” ban bitcoin, ethereum, and other cryptocurrencies, a move dubbed “Operation Bottleneck 2.0” — a reference to a 2013 government initiative to ban services from banking services. Initiatives to cut off unneeded sectors.
“Some in the crypto space believe that recent efforts to surround the crypto industry and cut it off from the banking system are reminiscent of this little-known Obama-era plan.” Castle Island Ventures, wrote in a Substack post by investor Mike Solana road.
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Last month, the U.S. Federal Reserve rejected an application to join the ranks of cryptocurrency bank Custodia, casting doubt on whether the Office of the Comptroller of the Currency will issue a final approval. Cryptocurrency firms Protego and Paxos vs. National Trust bank charter or not.
“The U.S. government is leveraging banking organizations in a complex, wide-ranging crackdown on the crypto industry.
The administration’s efforts are no secret: They’re evident in memos, regulatory guidance and blog posts. However, the scale of the program — which encompasses virtually all financial regulators — and its closely coordinated nature have raised concerns among even the most veteran cryptocurrency warriors. Crypto businesses could become completely unbanked, and stablecoins could get bogged down, unable to manage incoming funds. Outside of cryptocurrencies, exchanges may be completely isolated from the banking system. “
Marcus Sotiriou, a market analyst at digital asset brokerage GlobalBlock, wrote that such a move “would be a big mistake from a U.S. perspective as it would help the rest of the world.” The chain is in a leading position in the technological revolution. “
The Biden administration said Congress needed to “do more” to regulate bitcoin and the crypto market, and warned that allowing crypto-system relationships would be a “serious mistake.” The wider financial sector deepened amid warnings of a “global financial crisis”.
The Biden administration’s approach to bitcoin and cryptocurrencies has led “a lot of crypto entrepreneurs to tell me they’re waiting for 2025 and a hypothetical DeSantis regime for things to change,” Carter added.
However, some in the bitcoin and crypto space are more optimistic, predicting that incumbents will lag behind upstarts.
Changpeng Zhao, chief executive of the world’s largest exchange Binance, has warned that Wall Street giants face “existing risks” if they do not embrace crypto.
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According to Forbes