Senator Lummis Issues Warning to FDIC Regarding Operation Choke Point 2.0

Senator Cynthia Lummis has warned the Federal Deposit Insurance Corporation (FDIC) about alleged misconduct related to "Operation Choke Point 2.0" (OCP 2.0), claiming staff may be destroying vital documents that could obstruct access to banking for crypto businesses.

Lummis urged FDIC Chair Marty Gruenberg to stop any tampering with documents.
She threatened criminal referrals to the Department of Justice for any obstruction or evidence destruction.
Gruenberg announced his resignation amid these allegations.

Whistleblowers allege information was withheld from policymakers and employees faced threats for sharing materials with the Senate. Lummis stated:

“This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials.”

Court Battles and Allegations of Bad Faith

Coinbase filed a lawsuit against the FDIC for access to documents, including a “pause letter” instructing banks to cut ties with crypto firms.
A judge ordered document release, but much was heavily redacted, prompting criticism of bad faith from the court.
Coinbase’s Chief Legal Officer indicated recent releases suggest a cover-up.

Lummis emphasized the need to protect records dating back to January 2022, including those related to digital asset supervision and enforcement actions. She demanded an end to retaliatory measures against whistleblowers, reinforcing Senate transparency efforts.

A Warning of Consequences

Lummis warned that deliberate destruction of evidence would lead to legal repercussions, stating:

“If it is uncovered that you or your staff have knowingly destroyed materials... it will result in swift criminal referrals to the US Department of Justice.”

The situation surrounding OCP 2.0 highlights rising tensions between regulators and the cryptocurrency industry, particularly regarding the FDIC's actions.