- Andreessen Horowitz alleges anti-crypto banking campaign by major US banks.
- Banking access for crypto faces new hurdles.
- Potential financial constraints on US crypto firms.
Andreessen Horowitz, through general partner Alex Rampell, warns that major US banks are reportedly initiating a campaign called ‘Operation Chokepoint 3.0′ aimed at restricting crypto firms’ banking access.
This could further complicate financial operations for the crypto industry, potentially impacting liquidity and access for cryptocurrencies like Bitcoin and Ethereum.
Recently, Andreessen Horowitz, represented by Alex Rampell, claimed banks are limiting crypto access. Dubbed Operation Chokepoint 3.0, this includes raising fees and restricting services for crypto companies.
Rampell, a general partner at a16z, highlighted major banks’ newfound strategies. JPMorgan Chase, led by CEO Jamie Dimon, is among those named in these anti-crypto actions, despite Dimon’s change in crypto stance.
“Major U.S. banks are once again orchestrating a concerted effort to suppress the crypto industry’s access to banking services.” — Alex Rampell, General Partner, Andreessen Horowitz
Immediate impacts on the cryptocurrency market include higher operational costs and reduced service access. These measures disproportionately affect crypto exchanges and payment platforms reliant on traditional banking channels.
The broader implications suggest financial pressures on the crypto industry. Potential constraints on funding and liquidity could affect centralized exchanges’ viability, especially in the US.
Industry observers are scrutinizing for immediate impacts. Major crypto projects could face challenges due to indirect constraints on the market infrastructure.
Similar past operations resulted in short-term setbacks. To mitigate these, the industry may pivot towards decentralized finance solutions. Historical data shows resilience, but uncertainty remains in regulatory and financial areas.
