The recent actions of the US Federal Reserve against Customers Bank, one of the few remaining crypto-friendly banks in the country, have intensified concerns about the federal government’s stance on cryptocurrency. Critics argue that the Fed’s enforcement measures—requiring the bank to give 30 days' notice before engaging with new crypto clients—are a significant overreach, effectively allowing the Fed to dictate which crypto companies can access banking services, thus stifling innovation in the sector.

Tyler Winklevoss, co-founder of Gemini, has been vocal about what he perceives as an orchestrated effort by the Fed, which he refers to as “Operation Choke Point 2.0,” to marginalize the cryptocurrency industry. He also dismissed Vice President Kamala Harris’ attempts to reset relations with the crypto sector as disingenuous, claiming that the administration’s policies remain hostile toward digital assets.

Echoing Winklevoss, Cardano founder Charles Hoskinson criticized the Biden administration, suggesting that its approach is harmful to the crypto industry and warning that Harris, if elected president, would likely continue this perceived “war on crypto.” This sentiment comes amid a broader push by some Democratic lawmakers for the party to adopt a more progressive stance on digital assets.

These developments occur against a backdrop of significant turmoil in the US banking sector, with several key banks serving crypto businesses—such as Silvergate Bank, Signature Bank, and Silicon Valley Bank—collapsing earlier this year, further exacerbating concerns about the future of cryptocurrency in the United States.