Senator Cynthia Lummis has raised serious concerns about the Federal Deposit Insurance Corporation (FDIC) over claims that it may have destroyed documents related to “Operation Chokepoint 2.0.”
Operation Chokepoint 2.0 refers to allegations that U.S. government agencies, including the Federal Deposit Insurance Corporation (FDIC) and others, have systematically pressured banks and financial institutions to sever business relationships with cryptocurrency firms. This is viewed as an unofficial policy to hinder the growth and operations of the crypto industry.
The term builds on “Operation Chokepoint,” a controversial 2013 initiative where the Department of Justice targeted specific industries (like payday lenders and firearms dealers) by discouraging banks from providing them services. Operation Chokepoint 2.0 implies a similar strategy but focused on digital assets.
According to whistleblowers, the FDIC withheld information and possibly destroyed critical documents to obstruct oversight efforts. They also accused the agency of intimidating employees who tried to share information with the Senate.
In a strongly worded letter to FDIC Chair Marty Gruenberg, Senator Lummis demanded that the agency stop any document destruction immediately. She warned that any deliberate attempts to hide or destroy evidence would result in criminal referrals to the Department of Justice.
“This is illegal and unacceptable,” Lummis stated in her letter. She urged the FDIC to preserve all records related to digital assets and cryptocurrency since January 2022.
“Please preserve all existing materials, including documents, communications, electronic information and metadata, relating to the FDIC’s digital asset activities since January 1, 2022 that may be responsive to the Senate Banking Committee’s oversight prerogatives in the coming months,” she said in her letter.
The allegations come as Congress prepares for hearings to investigate these claims. Lummis, a known supporter of cryptocurrency innovation, highlighted the need for transparency, calling the alleged actions “unacceptable.”
These accusations are part of broader concerns about how regulatory agencies handle the crypto industry. Critics argue that “Operation Chokepoint 2.0” is an effort to stifle the growing digital asset space without proper justification.
Senator Lummis in mid-November proposed using the Federal Reserve’s gold to buy Bitcoin for the U.S. government. The senator wants the U.S. government to build a strategic bitcoin reserve that could hold up to 1 million Bitcoin costing around $100 billion.
