David Marcus Blames Political Meddling, Not Regulatory Issues, for the Collapse of Diem

His account adds to a growing chorus of claims about “Operation Chokepoint 2.0,” an alleged government effort to pressure banks into severing ties with cryptocurrency firms.

David Marcus, former head of Facebook’s Libra stablecoin project, has revealed new details about the initiative’s collapse, alleging that political interference — not regulatory noncompliance — was its undoing.

His account adds to a growing chorus of claims about “Operation Chokepoint 2.0,” an alleged government effort to pressure banks into severing ties with cryptocurrency firms.

In a recent post on X, Marcus recounted how Libra was ready for a limited rollout in 2021 after addressing every regulatory concern.

However, Treasury Secretary Janet Yellen allegedly told Federal Reserve Chair Jay Powell that approving the project would be “political suicide.”

Soon after, the Fed reportedly pressured banks to back away, effectively killing the initiative.

Marcus’s revelations struck a chord with other industry leaders.

Caitlin Long, CEO of Custodia Bank, replied to the thread claiming her firm faced similar targeting, stating, “Someday…I’ll be able to tell the real story of what the Fed did to Custodia Bank.” She added, “There’s so much corruption.”

Marc Andreessen of Andreessen Horowitz has also highlighted the issue, stating on The Joe Rogan Experience that more than 30 tech founders have been “debanked” over the past four years.

Crypto founders like Sam Kazemian alleged that JPMorgan Chase was instructed to close accounts tied to crypto wealth.

The controversy echoes concerns raised by Coinbase, which recently accused the FDIC of discouraging banks from engaging with crypto firms under the guise of “safety and soundness” reviews.