Custodia Bank CEO Challenges Claims That Operation Chokepoint 2.0 Has Ended

Caitlin Long, CEO of Custodia Bank, has refuted Vice President JD Vance's assertion that Operation Chokepoint 2.0 has concluded. During an interview with Wolf of All Streets, Long described Vance's victory declaration as premature, emphasizing that the regulatory tools and personnel targeting cryptocurrency businesses remain unchanged at federal banking agencies.

Operation Chokepoint 2.0 refers to an unofficial initiative by U.S. banking regulators under the Biden administration to discourage financial institutions from servicing digital asset firms. Rather than formal bans, agencies like the FDIC, Federal Reserve, and Office of the Comptroller of the Currency employed supervisory guidance to pressure banks into severing ties with crypto companies while maintaining plausible deniability about coordinated action.

Long noted that Senator Cynthia Lummis correctly identified that the same personnel implementing these policies remain in key positions. Despite political rhetoric supporting cryptocurrency, the regulatory infrastructure creating banking access challenges persists. The Custodia CEO warned that premature declarations of victory could foster false industry confidence while systemic issues remain unresolved.

Pointing to entrenched career bureaucrats, Long explained how long-serving agency staff have become institutional power centers amid rotating political appointees. Some Federal Reserve officials with progressive leanings and anti-crypto positions have maintained influence regardless of administration changes, complicating regulatory reform efforts.

While awaiting clearer policies, Custodia Bank has partnered with Vantage Bank to develop tokenized deposit solutions that circumvent current restrictions. Their collaboration recently enabled DX Express, a Mexican trucking company, to execute cross-border USD transactions in seconds with minimal fees - a stark improvement over traditional ACH and SWIFT systems. The bank's interoperable network model combines banking access with stablecoin technology while avoiding the tax complications that deter mainstream adoption of existing digital assets.

Custodia anticipates significant opportunities in serving traditional businesses restricted by current accounting and tax treatment of crypto transactions, with potential applications spanning cross-border payments, supply chain finance, and real-time payroll solutions.