Republicans on the House Financial Services Committee have released a comprehensive 50-page report, dubbed “Operation Chokepoint 2.0,” detailing what they allege is a systematic debanking effort by Biden-era regulators targeting the digital-asset sector. While some findings—such as the Federal Reserve, FDIC, and OCC pressuring banks away from crypto through informal guidance and the SEC’s “enforce first, make rules never” approach—were previously discussed, this report officially places them into the Congressional record. The document identifies at least 30 entities that were effectively “debanked” or pushed out of the U.S. banking system without formal enforcement actions, through what the Committee describes as government coercion, biased enforcement, and private pressure.

According to the report, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) employed a range of tactics to influence bank behavior regarding crypto companies. These tactics included “non-objection” letters, “pause” letters, and other forms of informal guidance designed to make banks hesitant to engage with crypto firms. Concurrently, the Securities and Exchange Commission (SEC) is accused of adopting a policy of “enforce first, make rules never,” opting for selective enforcement over clear regulatory frameworks to restrict digital-asset activities. A notable example cited is SAB 121, an SEC guidance that reportedly blocked banks from offering custody services for crypto assets, further illustrating regulatory pressure.

The report highlights a disconnect between public statements and private actions by regulators. It asserts that while regulatory bodies consistently denied discouraging digital-asset activity, evidence collected by the Committee reveals a consistent pattern of private pressure and informal coercion exerted on banks to sever ties with crypto firms. Committee Republicans argue that these actions represent a revival of the controversial “Operation Choke Point,” a program from the early 2010s that used regulatory and reputational pressure to discourage banks from serving certain industries deemed high-risk.

The tactics employed against crypto firms, as detailed in the report, echo those of the original Operation Choke Point: informal guidance, opaque supervisory expectations, and warnings about reputational risk. A Committee spokesperson stated: “The lack of clear rules combined with aggressive enforcement has created a chilling effect on the digital-asset sector,” leading to legitimate American businesses being forced to move abroad or shut down, not due to wrongdoing, but due to regulatory overreach.

The report includes anecdotal accounts from firms that struggled to maintain essential bank accounts despite adhering to all applicable laws. One executive described enduring repeated requests for documentation, sudden account closures, and vague warnings from compliance officers citing pervasive regulatory ‘uncertainty.’ Another recounted being effectively cut off from the U.S. banking system following a routine regulatory filing, highlighting the precarious environment for digital-asset businesses. Republicans on the Committee contend that this climate has stifled innovation and driven significant financial activity offshore.

In response to these findings, Committee Republicans call upon Congress and the Biden administration to reverse these policies. They urge the provision of explicit regulatory guidance and measures to ensure legitimate crypto firms can access banking services without fear of arbitrary pressure or informal coercion. The Committee’s full report is publicly accessible on the House Financial Services Committee website for further review.