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Operation Choke Point 2.0 is an alleged initiative by the Biden administration aimed at restricting crypto firms' access to banking services, drawing parallels to a previous program under Obama. Critics argue that regulatory actions from agencies like the SEC and FDIC have pressured banks to sever ties with the crypto industry, despite official denials of the program's existence. Trump has pledged to dismantle this initiative if re-elected, echoing his previous efforts to end the original Operation Choke Point.
BVNK has raised $50 million in a Series B funding round to expand its stablecoin operations into the US, targeting San Francisco and New York City. Meanwhile, Coinbase faces a $1 billion lawsuit from BiT Global over its delisting of Wrapped Bitcoin, which BiT alleges is an anticompetitive move. Additionally, Deutsche Bank is developing a layer-2 blockchain on Ethereum to enhance compliance in regulated finance, while Tether's USDT continues to be traded across European exchanges despite Coinbase's delisting.
Over the past three years, around 120 crypto hedge funds, representing 75% of those surveyed, have faced significant banking challenges, including relationship terminations and vague explanations from banks. This situation has fueled discussions about "Operation Chokepoint 2.0," an alleged initiative by the Biden administration to restrict banking access for the crypto industry. While affected funds eventually found banking partners, they often turned to smaller, regional institutions.
A federal judge in California has denied BiT Global's request to halt Coinbase's delisting of wrapped Bitcoin (wBTC), citing insufficient evidence of imminent harm. The ruling allows Coinbase to proceed with the delisting, which it justified due to concerns over ties to Justin Sun, who faces fraud charges from the SEC. Coinbase now has 30 days to respond to broader claims in BiT Global's lawsuit, which includes allegations of attempted monopolization.
Coinbase is contesting BiT Global's legal effort to block the delisting of wrapped Bitcoin (WBTC), citing concerns over Justin Sun's involvement and the lack of transparency regarding WBTC's reserves. Coinbase's chief legal officer described BiT's lawsuit as meritless, emphasizing the need to protect platform integrity and customer trust. BiT claims the delisting will harm its reputation and violate California's Unfair Competition Law, but Coinbase argues that WBTC transactions on its platform are minimal and users have alternative trading options. A hearing on BiT's request for a temporary restraining order is set for December 18.
Coinbase faces a $1 billion lawsuit from BiT Global Digital, accusing it of market manipulation by delisting Wrapped Bitcoin to favor its own product, Coinbase Wrapped Bitcoin. Meanwhile, Kraken Australia has been fined $5.1 million for regulatory breaches, including operating without a license. In Vancouver, the city council has approved a motion to explore Bitcoin integration into its financial operations, aiming to become a "Bitcoin-friendly city."
Bitcoin surged to a new all-time high of $107,195 following MicroStrategy's $1.5 billion acquisition of 15,350 BTC. The crypto market capitalization reached $3.68 trillion, driven by expectations of a US Federal Reserve rate cut, with altcoins like Hyperliquid and Ondo Finance also experiencing significant gains. Meanwhile, Coinbase faces a $1 billion lawsuit over its delisting of Wrapped Bitcoin, accused of anti-competitive practices favoring its own token.
Banks are increasingly distancing themselves from the crypto industry, citing regulatory scrutiny and the need to mitigate risks associated with potential illegal activities. This trend, often referred to as "derisking," has led to significant account closures for crypto entrepreneurs, raising concerns about a possible repeat of the controversial Operation Chokepoint initiative from the Obama Administration. Critics argue that this could stifle legitimate businesses while regulators maintain that their actions are necessary to protect the banking system's stability.
In a significant political shift, the cryptocurrency industry funneled over $245 million into the recent elections, helping candidates like Bernie Moreno defeat long-standing incumbents and secure nearly 300 pro-crypto lawmakers in Congress. This strategic investment aimed to eliminate critics and bolster support for crypto-friendly regulations, particularly following the SEC's aggressive stance under Gary Gensler. With the backing of major crypto executives and PACs, the industry is poised to exert unprecedented influence over future legislative agendas.
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