Democrats’ ‘Crypto for Harris’ Zoom Meeting Descended Into Chaos

Crypto execs unleash their fury at Democrats’ officials, turning a diplomatic Zoom meeting into a heated verbal showdown.

• Democrats are working to undo crypto industry damage under Biden’s watch.
• A meeting between industry execs and Democrats marked a move toward mending strained relations.
• Crypto execs blasted government officials about the White House’s approach to regulation.

As the November election nears, the debate over cryptocurrency has become increasingly politicized. 

Presidential candidate Donald Trump has been a vocal supporter of the crypto industry, a stance that has pressured the Democrats to reconsider their position on digital assets. 

In response to this challenge, Democrats are taking advantage of Joe Biden’s withdrawal from the presidential race to repair their strained relationship with the crypto industry. 

The party’s efforts to regain the support of crypto enthusiasts follow a period of regulatory crackdowns and accusations of deliberate de-banking. However, a recent meeting to open dialogue with the crypto industry soon devolved into chaos.

Democrat Officials Get Yelled At

A Zoom meeting held on Thursday, aimed at repairing relations between Democrats and crypto execs while rallying support for Kamala Harris’ election campaign, quickly spiraled into mayhem. 

The call featured high-ranking government officials, including deputy treasury secretary Wally Adeyemo and deputy director of the National Economic Council Lael Brainard, alongside executives from leading crypto firms such as Ripple, Coinbase, Kraken, and Uniswap.

Fox Business reported that the meeting saw crypto execs forcibly expressing their frustrations, directing sharp criticism at Democrat officials over what they saw as regulatory overreach and the damage inflicted on the industry during Biden’s watch. 

The conversation grew heated, with executives reportedly shouting their grievances, though reports did not provide details on how the officials responded to the outbursts.

Tensions escalated when Adeyemo denied allegations of a deliberate effort to de-bank crypto firms. 

In response, a crypto executive asked the industry attendees to indicate if their companies had been de-banking. The majority of industry representatives raised their hands, casting doubt on Adeyemo’s statement.

De-Banking Emerges as a Major Industry Concern

Picking up on the de-banking thread, Laura Shin, host of the Unchained Podcast, took to social media to survey her followers about their de-banking experiences. 

https://twitter.com/laurashin/status/1821721818283053489

Her informal poll received affirmative responses from several prominent crypto figures, including Erik Voorhees of Shapeshift, Tyler Winklevoss of Gemini, and David Bailey of Bitcoin Magazine, to name a few.

Although Shin’s social media survey lacked statistical rigor, it still highlighted ongoing concerns about a deliberate attempt to stifle the crypto industry, in what VC Nic Carter labeled Operation Chokepoint 2.0.

Is Operation Chokepoint 2.0 Real?

Carter first coined the term Operation Chokepoint 2.0 in early 2023 to describe what he saw as attempts to isolate the crypto industry from the banking system. 

This concept gained traction during a time of heightened regulatory scrutiny in the crypto sector, marked by high-profile SEC enforcement actions against companies like Gemini, Nexo, and Kraken. This period has since been dubbed the ‘War on Crypto’ by many in the industry.

The term Operation Chokepoint 2.0 was derived from the original Operation Chokepoint, an Obama-era initiative from 2013 in which the Department of Justice pressured banks to close the accounts of businesses deemed undesirable, such as gun dealers and payday lenders. 

Critics of the original operation argued that it bypassed due process and imposed ideological preferences through indirect methods. 

However, it’s crucial to note that, despite the controversy surrounding the original operation, there is no concrete evidence of an official Operation Chokepoint 2.0 specifically targeting the crypto industry.

Despite the tensions evident in Thursday’s Zoom meeting, Anthony Scaramucci, founder of Skybridge Capital, felt encouraged due to the government’s willingness to engage with the crypto industry. 

Scaramucci expressed hope for Harris to garner increasing crypto industry support in the run-up to the November election.