U.S. House Lawmakers Detail Grievances Over Government's 'Choke Point 2.0'

Lawmakers Highlight Concerns About ‘Choke Point 2.0’

Overview

French Hill, chairman of the House Financial Services Committee, published a detailed report describing U.S. lawmakers’ concerns about the federal government’s alleged pressure on banks to restrict or cut ties with cryptocurrency companies and other legal industries.

Main Findings

The report accuses several federal agencies, including the Federal Reserve and the FDIC, of discouraging banking services to digital asset firms through informal guidance and behind-the-scenes pressure. Lawmakers referred to this practice as “Choke Point 2.0”, drawing parallels to the Obama-era initiative Operation Choke Point, which sought to cut off banking access to certain high-risk sectors.

Lawmakers’ Reactions

Hill argued that these actions represent “a dangerous abuse of regulatory authority that undermines fair access to the financial system.” According to the report, this behavior not only harms crypto businesses but also limits innovation and economic opportunity across various industries.

“Regulators should not pick winners and losers in the marketplace. Their job is to ensure stability, not to suffocate lawful enterprises,” the report stated.

Policy Implications

House members called for stronger oversight of financial regulators and proposed statutory safeguards to prevent similar acts of regulatory overreach. They emphasized the need for transparent communication between banks, regulators, and crypto entities.

Broader Context

The findings align with growing congressional scrutiny of the Biden administration’s approach to digital assets. Lawmakers across party lines expressed concerns that inconsistent regulation slows the integration of blockchain technology into mainstream finance.

“We must ensure our financial system welcomes innovation, not fear it,” Hill said in closing remarks.

Author’s summary: U.S. lawmakers criticize regulators for pressuring banks to cut crypto ties, calling it undue interference that stifles lawful innovation and financial access.

CoinDesk — 2025-12-01