Custodia’s Caitlin Long Counters Claims of Operation Chokepoint 2.0’s Demise

Caitlin Long, founder of Custodia Bank, disputes Vice President JD Vance's declaration that Operation Chokepoint 2.0 has ended. Long asserts that regulatory pressures on cryptocurrency businesses persist, with federal banking agencies maintaining the same tools and personnel. The informal campaign, initiated under the Biden administration, has seen regulators like the FDIC and Federal Reserve use supervisory guidance to discourage banks from servicing crypto firms.

Long's rebuttal highlights a stark contrast between political rhetoric and regulatory reality. While Vance's announcement suggested a victory for the crypto industry, the mechanisms enabling banking restrictions remain operational. This disconnect underscores the challenges digital asset businesses face in securing reliable banking partnerships.

The original Operation Chokepoint, a controversial Obama-era initiative, targeted industries deemed high-risk. Its 2.0 iteration employs more subtle tactics—regulators avoid explicit bans but effectively achieve similar outcomes through backchannel pressure. Senator Cynthia Lummis has been among the few lawmakers to accurately characterize these ongoing challenges.