Tyler Winklevoss, co-founder of Gemini and Winklevoss Capital, has raised alarms about the continued implementation of Operation Chokepoint 2.0, a federal initiative aimed at restricting cryptocurrency companies’ access to banking services. His comments followed a recent enforcement action by the Federal Reserve against Customers Bank, a financial institution known for its crypto-friendly stance.
The Federal Reserve found that Customers Bank had “deficiencies” in its compliance with anti-money laundering (AML) regulations. In response, the central bank issued a directive requiring the bank to improve its oversight, risk management, and compliance measures within 60 days. This includes strengthening board oversight, enhancing compliance with the Bank Secrecy Act (BSA) and AML requirements, and ensuring adherence to the Office of Foreign Assets Control (OFAC) regulations.
Additionally, the bank must notify the Federal Reserve of any new initiatives or products 30 days before they are launched.
Winklevoss criticized the Federal Reserve’s actions, labeling them as part of Operation Chokepoint 2.0. He emphasized that this operation is still “in full swing” and suggested that the move was part of a broader effort to restrict the cryptocurrency industry. Winklevoss described the Harris administration’s crypto policies as a “scam,” claiming they are designed to create obstacles for crypto firms seeking banking services.
“Customers Bank is one of the few remaining crypto-friendly banks in America today,” Winklevoss stated. “The Fed is now a direct gatekeeper standing between crypto companies and their ability to get a new bank account.”
Winklevoss also expressed concerns about the future of the crypto industry, warning that the situation could deteriorate if Vice President Kamala Harris wins the upcoming election and Senator Elizabeth Warren continues her role. He argued that the current regulatory measures are just the beginning of a more aggressive crackdown on the industry, stating, “If Harris wins in November, the gloves will come off.”
The Gemini co-founder believes that the Biden-Harris administration’s approach to cryptocurrency could severely harm the industry if their policies persist for another term. He cautioned that Operation Chokepoint 2.0 is “alive and well,” and that the recent action against Customers Bank is just the start of a broader effort to limit the growth and development of the crypto sector.
