Insider EXPOSES The Secret ATTACK On The Bitcoin Industry! Chokepoint 2.0 with Caitlin Long

Summary

In this episode of TFTC, Caitlin Long discusses the banking crisis of 2023, triggered by regulatory actions against the crypto industry, with a focus on the role of Elizabeth Warren and the FED. They explore the collapse of Silvergate and Signature Bank, the impact on the Bitcoin and crypto sector, and the broader implications for the US financial system. The conversation also touches on potential political shifts and the future of banking in the context of decentralized finance.

Takeaways

• 😨 The discussion suggests a scandal where Elizabeth Warren and her associates allegedly incited a financial panic with the aim of dismantling the crypto industry.
• 🏦 The script recounts the significant bank run that ensued, implicating the FED's actions towards Silvergate Bank as a catalyst for the crisis.
• 📉 The collapse of Silvergate, First Republic, and Signature Bank had a domino effect on traditional banking, causing a widespread panic and highlighting systemic fragility.
• 🚫 The narrative points to regulatory overreach, specifically targeting crypto-friendly banks, which may have been driven by a desire to control the financial sector and stifle competition to a potential central bank digital currency.
• 🛑 The FED's alleged ultimatum to Silvergate to diversify away from crypto or close down is seen as a pivotal moment that led to the bank's liquidation and subsequent banking sector turmoil.
• 💡 The conversation underscores the importance of Bitcoin and crypto in fostering innovation and providing a more stable financial system compared to traditional banking.
• 🏛️ There's a call for justice and accountability, with suggestions that the courts can provide a remedy for the industry, which has faced regulatory hostility and suffered financial losses.
• 🗳️ The discussion highlights the importance of elections and political influence, suggesting that political shifts could significantly impact the regulatory landscape for crypto.
• 🔄 The script points out the potential for states to challenge federal overreach, with mentions of states like Wyoming and Florida considering establishing their own banks or clearinghouses.
• ⚖️ There's a noted concern about the Federal Reserve's structure and its potential unconstitutionality, with discussions about the need for a Nexus to a presidentially appointed Senate-confirmed officer for legitimate governance.

Q & A

What is the main allegation against Elizabeth Warren in the transcript?

The main allegation is that Elizabeth Warren and her associates initiated actions which led to a financial panic, specifically targeting the crypto industry in an attempt to kill it off, which nearly resulted in a systemic collapse.

What is 'Operation Choke Point' mentioned in the transcript?

'Operation Choke Point' refers to an alleged government initiative that began under the Obama administration and allegedly targeted certain industries, including crypto, by applying pressure on banks to cut off services to those industries.

What does Elaine Hrie's affidavit suggest about Silvergate Bank?

Elaine Hrie's affidavit suggests that Silvergate Bank was solvent at the time of its forced liquidation and was under increased supervisory pressure to cease focusing on crypto asset businesses or face shutdown.

What is the significance of the '15% rule' mentioned in the transcript?

The '15% rule' is an alleged demand by regulators that banks diversify their customer base away from crypto companies to no more than 15% of their total customers, which is seen as an attempt to limit banks' exposure to the crypto industry.

Why is the Federal Reserve's (FED) role in the banking crisis a point of contention?

The FED's role is contentious because it allegedly gave Silvergate Bank an ultimatum to either diversify away from its crypto customer base or cease operations, which is believed to have triggered a systemic bank run and significant financial instability.

What is the custodia bank situation as discussed in the transcript?

Custodia is a crypto-native bank that has faced regulatory hurdles and has been denied a Federal master account, which has hindered its operations and put it at the forefront of fighting against the current administration's stance on crypto banking.

Why are states like Wyoming taking an interest in the banking and crypto industry?

States like Wyoming are taking an interest because they see the potential for economic growth and job creation through the crypto industry and are pushing back against what they perceive as federal overreach and unfair targeting of the industry.

What is the connection between the crypto industry and the traditional banking crisis as discussed?

The connection lies in the alleged actions by the FED and other regulators to pressure banks like Silvergate and Signature Bank, which served the crypto industry, leading to a bank run that affected traditional banks like Silicon Valley Bank.

What is the role of the FDIC in this situation?

The Federal Deposit Insurance Corporation (FDIC) had to cover the costs of the bank runs, which resulted in a significant hit to its insurance fund, ultimately affecting all banks and their customers through increased deposit insurance premiums.

What are the potential implications of the events discussed in the transcript for the US financial system?

The potential implications include a loss of confidence in the banking system, increased regulatory scrutiny, and potential policy changes that could either stifle or foster innovation in the crypto and financial technology sectors.

Why is the distinction between the Federal Reserve Banks and the Board of Governors relevant?

The distinction is relevant because the Federal Reserve Banks are private entities, while the Board of Governors is a federal agency. This structure may have implications for oversight, regulation, and the application of laws such as the Freedom of Information Act.