Introduction
Tyler Winklevoss, co-founder of Gemini, has openly criticized U.S. Vice President and Democratic Presidential candidate Kamala Harris, accusing her of promoting what he describes as a fraudulent "crypto reset." Winklevoss alleges that Harris is falsely presenting a shift in the Biden administration’s and the Democratic Party’s stance on cryptocurrencies. This accusation comes as the digital asset industry becomes increasingly central in the discussions leading up to the U.S. general elections.
Operation Choke Point 2.0: Still in Play?
In a recent post on X (formerly Twitter), Winklevoss asserted that "Operation Choke Point 2.0"—a perceived initiative by the U.S. government to marginalize the crypto industry—is still actively in effect. He referenced a recent enforcement action by the U.S. Federal Reserve against Customers Bank, a crypto-friendly financial institution, as evidence of the administration's ongoing efforts to undermine the digital asset space. Contrary to the belief that the administration is softening its "anti-crypto" stance, Winklevoss contends that Vice President Harris is not reversing these policies.
"Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, providing valuable insight into how it operates, and verifying that the Harris crypto ‘reset’ is a scam," Winklevoss stated in his post. He pointed to a 13-page enforcement action issued by the Fed, which he claims exposes the continued targeting of the crypto industry.
Federal Reserve's Enforcement and the Implications
The Federal Reserve's action, as outlined in a court order released on Friday, identified significant deficiencies in Customers Bank's risk management practices and violations of U.S. anti-money laundering laws. However, Winklevoss emphasized that the core issues weren't addressed. Instead, Customers Bank is now required to provide a 30-day notice to the Federal Reserve before engaging with any digital asset entities.
Winklevoss argued that this sanction is another form of "Choke Point," restricting the autonomy of banks in choosing their clients. He criticized the centralization of decision-making within the Federal Reserve, which he believes should remain decentralized across the entire banking industry.
"The decision of whether to bank a company should be decentralized across the banking industry and made by each bank at its discretion. Now, this decision has been centralized by the Fed and will be made solely at its discretion. The Choke Point has been created," Winklevoss stated.
He further suggested that this enforcement action serves as a warning, claiming that the Federal Reserve is currently "playing nice with Nerf guns." Winklevoss predicted that if Kamala Harris wins the upcoming election, "Operation Choke Point 2.0" would escalate significantly.
Industry Reaction: A Vote Against Crypto?
Cardano founder and CEO Charles Hoskinson echoed Winklevoss' sentiments, suggesting that a vote for Kamala Harris would be detrimental to the crypto industry. Hoskinson argued that the current Biden-Harris administration is not backing down from its "anti-crypto" policies, despite recent meetings between White House officials and key figures in the crypto industry, including billionaire Mark Cuban and Ripple CEO Brad Garlinghouse, which aimed to ease tensions and explore supportive policies for the sector.
Closing Thoughts
As the U.S. elections approach, the debate over cryptocurrency regulation continues to intensify. The accusations by Tyler Winklevoss and the subsequent reactions from industry leaders highlight the growing significance of digital assets in the political landscape. Whether these concerns will influence voter sentiment remains to be seen, but the crypto community is undoubtedly paying close attention.