A damning report from the U.S. House Financial Services Committee has unveiled a systematic campaign by federal regulators to stifle the cryptocurrency industry, a strategy critics have labeled 'Operation Choke Point 2.0.' Spearheaded by Chairman French Hill, the investigation found that agencies including the Securities and Exchange Commission (SEC), the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) used informal guidance and pressure to discourage banks from servicing digital asset firms.
The report details a widespread 'de-banking' phenomenon, where financial institutions severed ties with crypto companies due to fear of regulatory reprisal. This strategy, which the report argues was not a case-by-case enforcement but a deliberate suppression, crippled operations and forced innovation and talent overseas to jurisdictions like Singapore and Switzerland. The findings raise serious concerns about financial innovation, consumer protection, and America's position as a global financial leader.
Simultaneously, new data underscores the intensifying global regulatory focus on the sector. Coinbase's 2025 transparency report reveals a 19% year-over-year surge in law enforcement requests, totaling 12,716 requests between October 2024 and September 2025. The United States submitted 53% of these requests, but the most dramatic growth came from Europe, with France seeing a 111% increase.
This dual narrative highlights a critical crossroads for crypto in America. The congressional report calls for moving from 'regulation by enforcement' to clear, legislated rules, citing several pending bills in Congress. The path forward hinges on establishing a predictable legal framework that manages risk without smothering blockchain technology's potential, as the global race for financial technology leadership accelerates.
