The entirety of the Joe Rogan interview with Marc Andreeseen, co-founder of venture capital firm Andreessen Horowitz, on Joe’s podcast is fascinating, but please listen to this part. The abuse of power within unaccountable (and arguably unconstitutional) federal agencies has become so extreme the stories are almost unbelievable.
It involves allegations of a practice termed “Operation Chokepoint 2.0,” where the Biden administration purportedly uses financial institutions to cut off banking services to political opponents and disfavored tech startups, particularly those involved in the cryptocurrency sector.
Once this story broke, tech start-up heads, who had been fearful of speaking out, appeared all over social media with stories confirming what Andreeseen said. More than 30 tech and cryptocurrency founders in the U.S. have claimed they were denied banking services in “Operation Chokepoint 2.0.”
The entirety of the Joe Rogan <> Marc Andreeseen podcast is fascinating, but please, please listen to this part.
— Austen Allred (@Austen) November 27, 2024
The abuse of power within unaccountable (and arguably unconstitutional) federal agencies has become so extreme the stories are almost unbelievable. pic.twitter.com/wwwEifM41U
- Operation Chokepoint 2.0: This term refers to what Andreessen claims is a continuation and expansion of an earlier Obama-era initiative known as “Operation Chokepoint,” which aimed to restrict financial services to businesses considered high-risk for fraud or money laundering, like marijuana dispensaries, gun shops, and payday lenders. However, Andreessen suggests that this operation has evolved to target tech founders and crypto entrepreneurs as well.
- Marc Andreessen’s Claims: During an interview on The Joe Rogan Experience, Andreessen stated that over 30 tech founders have been debanked in the last four years. He described this as a method of exerting control without due process or formal appeal mechanisms, essentially a “privatized sanctions regime” against American citizens or companies deemed politically unfavorable or involved in controversial industries like cryptocurrency.
- Confirmed by Other Tech Leaders:
- Elon Musk: Although Musk hasn’t directly confirmed his personal debanking, he has alluded to “unjustified closures” affecting colleagues in the tech industry through his X posts, pointing towards a broader issue within the sector.
- Brian Armstrong: The CEO of Coinbase has confirmed the debanking phenomenon, labeling it as one of the most unethical moves by the Biden administration. Coinbase is reportedly collecting FOIA requests to shed light on who might be involved in these debanking efforts. He has said that “Elizabeth Warren’s fingerprints” are all over the alleged de-banking of 30 tech founders and has also fingered SEC Chair Gary Gensler.
- Caitlin Long: CEO of Custodia Bank, confirmed her company’s experience with repeated debanking, and they are pursuing legal action against the Federal Reserve, with an oral argument scheduled for January 21, 2025.
- Broader Impact: The practice of debanking, as described, not only affects individual entrepreneurs but also poses significant risks to innovation within the tech sector. Startups need banking services for operational continuity, payroll, and capital raising. This issue has also been highlighted in other countries, like the UK and Australia, indicating that it might not be confined just to U.S. political dynamics.
This situation has contributed to some tech leaders’ decisions to support political candidates like Donald Trump, who they perceive as more favorable to tech and crypto industries.
As Republicans take control over the Senate, South Carolina Senator Tim Scott will be the new head of the Senate Banking Committee ousting anti-crypto Warren for this influential role.
This should help the Trump administration to implement all the pro-crypto policies promised by Donald Trump in his election campaign as well as investigation 2.0.