Custodia Bank CEO Caitlin Long has pushed back against claims that the controversial “Operation Choke Point 2.0” has ended, contradicting a recent statement made by Vice Presidential candidate J.D. Vance.
In a recent interview, Long criticized Vance’s May 28 speech in which he declared that the alleged coordinated effort to cut off crypto firms from the banking system—dubbed Operation Choke Point 2.0—was over. Long disagreed, calling the statement premature and misleading.
“It’s not dead yet, unfortunately, because the tools that were used to target our industry are still in place,” Long said during an interview with Arch Public.
The term “Operation Choke Point 2.0” is commonly used by crypto advocates to describe how financial regulators under the Biden administration allegedly pressured banks to sever ties with cryptocurrency businesses. Despite progress in pro-crypto policy under the Trump administration, Long argues that federal “de-banking” mechanisms remain active.
Throughout the Biden presidency, agencies like the SEC, Federal Reserve, FDIC, and OCC have issued warnings highlighting the risks associated with banks servicing crypto firms. The SEC, in particular, has faced criticism for aggressively pursuing legal action against major players like Binance, Coinbase, and Ripple—often using ambiguous regulations that blur the line between securities and digital assets.
While there have been signs of regulatory softening—such as the Federal Reserve and OCC recently walking back certain warnings and allowing limited bank activity involving crypto—Long argues that many informal tools used to discourage bank-crypto relationships still persist.
These include unofficial mechanisms like supervisory pressure, “pause letters,” and aggressive exam practices by regulators such as the FDIC. Until these back-channel tactics are eliminated, Long maintains that the operation continues behind the scenes. She also noted that many individuals involved in launching Operation Choke Point 2.0 remain in key regulatory positions.
This sentiment echoes criticism from pro-crypto Senator Cynthia Lummis, who in April accused the Fed of offering only “lip service” after it removed restrictive guidance. Lummis pointed out that the central bank continues to deny master account access to crypto-friendly institutions.
Custodia Bank itself has been a high-profile target. In 2022, the bank filed a lawsuit against the Federal Reserve, accusing it of deliberately stalling its master account application for over 19 months without a decision.
For Long, these ongoing issues underscore a simple reality: despite optimistic claims, Operation Choke Point 2.0 is still very much alive.
