Is The Biden Administration Behind Attack On Crypto?

The attack on crypto projects is sanctioned from the very top of the Biden administration, a source who requested anonymity said.

Biden Administration Sanctions Attack on Cryptocurrency

Speaking to crypto podcaster Tony Edwards, host of Thinking Crypto, the source said the operation, codenamed Chokepoint 2.0, is clearly targeting crypto projects, most of which are based in the United States and continue to offer citizens access to various products.

The source, who previously worked in government before getting into crypto, said the leaders approved of the crypto attack operating in the United States.

The “negative” attitude from the Biden administration comes from, among others, Janet Yellen, the secretary of the treasury, who is known to oppose cryptocurrencies and bitcoin, and Gary Gensler, head of the Securities and Exchange Commission (SEC).

For this reason, leading companies such as the Kraken crypto exchange, Binance and others have come under pressure. The crypto market has so far ignored these attacks, as evidenced by the price action of bitcoin and other cryptocurrencies.

Bitcoin price February 15
Bitcoin price February 15: Source: BTCUSDT on Binance, TradingView

Gary reportedly wants the Securities and Exchange Commission to have more power. Additionally, there has been talk that the Federal Reserve will eventually issue a stablecoin. The source said stablecoin projects, including Paxos and Circle, are undermining the Fed and the broader banking industry by making it harder to control money. It is said that stablecoins “do not usurp the digital dollar.”

The energy that officials from the Securities and Exchange Commission (SEC), the Commodity Futures Exchange Commission (CFTC) and various agencies, including the New York City Department of Financial Services (NYDFS) have shown, is due to the fact that they know that “not there will be no consequences.” at least for now,” the source said.

SEC concerned about crackdown on cryptocurrency projects

The SEC is cracking down on various cryptocurrency projects, alleging that they violate US regulations and are actively offering unregistered securities.

Ripple Inc., whose officials, including Bradley Garlinghouse, have previously been accused of raising $1.3 billion from the sale of XRP, which the SEC claims is an unregistered security.

In recent weeks, the SEC has settled $30 million with Kraken, a cryptocurrency exchange, with an agreement that they must shut down their cryptocurrency as a staking service in the United States.

The agency also won a long-running case against LBRY, a file-sharing and payments network. The District Court in New Hampshire agreed with the SEC that LBRY sold unregistered securities when it issued LBC to users. As a result, the SEC had the right to make a permanent injection against the sale of the project’s token, as well as to demand a refund of all commissions received with interest.

Paxos, the firm behind the Binance-branded BUSD stablecoin, also received the Wells Notice from the SEC. Gary Gensler and his team are convinced that BUSD is an unregistered security. The NYDFS also asked them not to issue new tokens.

Image from AP/Susan Walsh, chart from TradingView

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