Operation Chokepoint 2.0: Reports of Widespread Banking Access Denials in Tech Sector

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TLDR

Over 30 tech founders reportedly lost banking access in the last 4 years Marc Andreessen claims this is part of “Operation Chokepoint 2.0” targeting crypto and tech companies SEC Chair Gary Gensler denied knowledge of Operation Chokepoint 2.0 in Congress Coinbase CEO Brian Armstrong suggested Elizabeth Warren’s involvement The issue extends beyond US borders, with similar cases reported in UK and Australia

A growing number of tech industry leaders are reporting unexpected terminations of their banking services, with over 30 founders experiencing account closures in the past four years, according to recent statements from prominent industry figures.

Marc Andreessen, co-founder of venture capital firm Andreessen Horowitz, brought attention to this issue during an appearance on The Joe Rogan Experience podcast. Andreessen described what he calls “Operation Chokepoint 2.0,” referring to a perceived pattern of financial service denials targeting tech startups and cryptocurrency companies.

The term draws its name from an Obama-era initiative that restricted banking services to certain industries considered high-risk, such as marijuana dispensaries and gun shops. According to Andreessen, the current situation represents an expanded version of this approach, now affecting technology companies and cryptocurrency ventures.

Tesla CEO Elon Musk amplified these concerns on social media platform X, highlighting the reported number of affected tech founders. This prompted additional industry figures to share their experiences, including Custodia Bank CEO Caitlin Long, who reported multiple instances of banking service denials.

The matter reached Congress during a recent hearing where all five voting members of the Securities and Exchange Commission appeared. When questioned about Operation Chokepoint 2.0, SEC Chairman Gary Gensler stated he had never heard the term before, adding another layer to the ongoing discussion.

Coinbase CEO Brian Armstrong joined the conversation, expressing strong criticism of the situation. Armstrong suggested potential involvement from Senator Elizabeth Warren, though no direct evidence has been presented to support this claim.

The process of “debanking,” where financial institutions revoke or restrict services to customers, often occurs without detailed explanation, according to affected parties. Andreessen noted the lack of formal procedures for appeal or reinstatement of services in these cases.

The impact extends beyond individual account closures. According to reports, affected companies face challenges accessing various financial services, including payment processing and insurance coverage, potentially limiting their ability to conduct business operations.

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