Tyler Winklevoss Warns of Federal Reserve’s Anti-Crypto Tactics in “Operation Chokepoint 2.0”

The co-founder of Winklevoss Capital and Gemini, Tyler Winklevoss, has cautioned strongly against what he perceives to be continuous efforts by US regulators to limit banking access for cryptocurrency startups. His remarks come in the wake of the Federal Reserve’s recent measures against Customers Bank, a financial institution that supports cryptocurrencies, for not complying with AML regulations.

The crypto community is worried after the Federal Reserve found “significant deficiencies” in Customers Bank’s AML procedures. According to Winklevoss, these moves are a part of a larger scheme dubbed “Operation Chokepoint 2.0,” a moniker used by the cryptocurrency press to characterize what appears to be a concerted attempt by authorities to deny cryptocurrency companies access to vital financial services.

According to Winklevoss, the Federal Reserve’s decision requires Customers Bank to notify the Fed 30 days in advance of any new banking relationship with a cryptocurrency company. This, he claims, puts the Federal Reserve in the position of a “gatekeeper,” effectively blocking crypto companies from securing necessary banking services. He criticized the approach, stating, “Given that Customers Bank is one of the only few crypto-friendly banks remaining in America today, this means that the Fed is now a direct gatekeeper standing between crypto companies and their ability to get a new bank account.”

Broader Implications and Industry Response

The broader implications of Operation Chokepoint 2.0, as Winklevoss sees them, could be devastating for the cryptocurrency industry in the United States. He suggests that the Federal Reserve’s actions are not just about enforcing AML compliance but are part of a deliberate strategy to undermine the crypto industry. Winklevoss’s brother, Cameron Winklevoss, also weighed in on the situation, previously labeling Vice President Kamala Harris’s alleged crypto “reset” as a “big bluff.”

This situation highlights the growing tension between the cryptocurrency industry and U.S. regulators, with crypto advocates like Tyler Winklevoss voicing concerns about the future of digital assets in the country. As the Federal Reserve continues its scrutiny, the crypto industry watches closely, wary of further restrictions that could impact its operations.