- David Marcus blames political interference, not regulations, for the collapse of Facebook’s Libra project.
- Crypto firms like Custodia and Gemini share stories of being targeted by federal pressure to sever banking ties.
- Industry leaders demand accountability, calling for investigations into alleged efforts to block crypto firms from banking.
Facebook's Libra (later Diem) stablecoin project's previous leader, David Marcus, revealed fresh information behind its sudden demise. He claimed that the project was stalled by political meddling rather than regulatory problems. Notably, Marcus claimed Libra was ready for a limited rollout in 2021 after addressing all regulatory concerns.
However, he alleged that Treasury Secretary Janet Yellen warned Federal Reserve Chair Jay Powell against approving Libra, calling it “political suicide.” Soon after, Marcus said the Federal Reserve pressured banks to withdraw support, effectively killing the initiative.
Operation Choke Point 2.0: A Growing Controversy
The disclosures rekindled claims of "Operation Choke Point 2.0," a fictitious attempt to cut off Bitcoin companies from conventional banks. Industry leaders, including Caitlin Long of Custodia Bank, supported Marcus’s claims.
Long alleged her firm faced similar targeting, calling out “so much corruption” in the system. Besides Long, Gemini co-founder Cameron Winklevoss affirmed Marcus’s account. He noted that Gemini had worked closely with Meta, only for federal regulators to block the project at the last minute.
Crypto entrepreneurs like Sam Kazemian also cited instances of forced debunking. Kazemian alleged that JPMorgan Chase was instructed to close accounts tied to crypto holdings. Moreover, Marc Andreessen of Andreessen Horowitz highlighted on The Joe Rogan Experience that over 30 tech founders faced similar banking restrictions in recent years.
Calls for Accountability Gain Momentum
The controversy extends to Coinbase and other crypto platforms accusing federal regulators of discouraging banks from crypto partnerships under the pretext of “safety and soundness.” Brian Armstrong of Coinbase and Cameron Winklevoss have publicly criticized these actions, aligning their voices with Marcus.
Significantly, XRP lawyer John Deaton called for an independent investigation into Operation Choke Point 2.0. He urged the next administration to appoint an independent counsel and suggested Nic Carter as a suitable investigator.
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