Operation Chalk Points 2.0 policy is back

David Sachs, Emperor Crypto of the White House, celebrated today’s great victory. He announced that the Federal Deposit Insurance Corporation (FDIC) is following the US office of the Secretary of Currency (OCC) to remove “reputation risk” as a factor in banking supervision. The change effectively backed up the controversial Operation Chalk Point 2.0 policy, leading to unfair de-pasting of crypto companies.

Sachs said this is a huge step forward for the code. Supported by numbers like Senator Elizabeth Warren, the Chalkpoint 2.0 tactic used ambiguous standards such as “reputation risk” to target the crypto business. This meant that the institution could be punished for negative publicity, whether true or not. New policy changes will make banking standards more objective and fair, preventing political influence from hurting the crypto sector.

Sachs also praised Sen. Tim Scott for his leadership driving these changes, particularly through the Financial Institution Reform and Modernization (Company) Act. The move is expected to create a better environment for crypto companies, and could potentially increase the price of digital assets in the future.

Fox Business’s Eleanor Terrett explained why “enforcement regulations” didn’t work, adding more context. She explained that Ripple spent years of legal expenses ranging from $150 million to $200 million, but she was in the same position as when the SEC filed the lawsuit in 2020.

XRP holders were also negatively affected as the exchange removed the token and its value decreased. Many other crypto projects were hesitant to build them in the US, fearing they would be targeted by the SEC. Terrett criticized SEC chair Gary Genzler for focusing resources on crypto companies while missing key issues such as FTX, 3AC and Celsius.