- US banks reportedly restrict access to financial services for major crypto platforms.
- Crypto trading on Coinbase and Robinhood may face challenges.
- Market response similar to past regulatory pressures and operations.
US banking giants are reportedly exerting fresh pressure on cryptocurrency platforms Coinbase and Robinhood by restricting banking relationships, reminiscent of the previous ‘Operation Chokepoint.’
This pressure could disrupt liquidity and trading activities in these platforms, potentially affecting major cryptocurrencies like BTC and ETH, given Coinbase and Robinhood’s significant market roles.
US banking giants are reportedly leading a fresh round of pressure on major crypto platforms Coinbase and Robinhood. This move mimics the earlier “Operation Chokepoint,” seeking to restrict financing avenues by limiting banking relationships.
Unnamed banking entities are allegedly targeting these platforms, affecting financial access. Coinbase and Robinhood, central to U.S. crypto trading, may encounter banking restriction challenges similar to historical pressures experienced by other industries.
The reported actions have significant market repercussions, likely impacting trading volumes and liquidity. These measures may threaten to impede retail and institutional access to Bitcoin, Ethereum, and more on these platforms.
Such pressures echo previous regulatory confrontations where both firms expended considerable resources. Coinbase alone spent more than $50 million in legal fees responding to SEC enforcement actions, as noted by a company spokesperson.
Past precedents like “Operation Chokepoint” highlight the governmental interest in controlling high-risk sectors by influencing banking ties.
Experts suggest these developments may reshape the crypto landscape, enforcing adaptable compliance mechanisms. Historical trends reveal similar pressures focusing on regulatory robustness which could prompt innovation or halt industry integration.
– Paul Grewal, Chief Legal Officer, Coinbase, – “In the SEC’s war against crypto, the agency ‘acted as if it was above the law, usurping the power of Congress as set forth in the Constitution.’”
