Critics are increasingly worried that the Federal Reserve’s recent actions could stifle innovation in the rapidly growing cryptocurrency sector. The Fed’s enforcement against the crypto-friendly Customers Bank has sparked speculation about the Harris campaign’s alleged crypto reset, raising concerns among key industry figures.
On August 9, Tyler Winklevoss, co-founder of Gemini, voiced his concerns on X. He suggested that the Fed’s actions confirm that “Operation Choke Point 2.0” is still in effect and accused the Harris crypto “reset” of being a scam.
Federal Reserve’s Action Against Customers Bank Raises Industry Concerns
The Federal Reserve’s recent 13-page enforcement action against Customers Bank has drawn significant attention, particularly within the cryptocurrency industry. The action requires the bank to provide a 30-day advance notice before establishing any new banking relationship with a cryptocurrency company.
Tyler Winklevoss, co-founder of Gemini, highlighted the broader implications of this move. He pointed out that Customers Bank is one of the few remaining crypto-friendly banks in the United States. Winklevoss argued that the Federal Reserve is now effectively controlling which crypto companies can access banking services, determining who can and cannot open a bank account, and thereby restricting these companies’ ability to operate.
Source: Tyler Winklevoss
He criticized the centralization of decision-making power within the Federal Reserve, suggesting that such decisions should be decentralized and made independently by individual banks rather than being dictated by the Fed.
Hoskinson, Lawmakers Question Admin’s Crypto Policy
In response to Tyler Winklevoss’ remarks, Charles Hoskinson, founder of Cardano, expressed concern about the current administration’s approach to the cryptocurrency industry. Hoskinson echoed the sentiment that the Biden-Harris administration holds a hostile stance toward crypto, suggesting that this position has remained unchanged. He cautioned that voting for Kamala Harris could negatively impact the American crypto industry, indicating that she might continue what he perceives as a “war on crypto.”
In July, a group of House lawmakers, led by Representative Nickel, sent a letter to Democratic National Committee Chair Jaime Harrison. They urged party leaders to embrace a progressive stance on digital assets and blockchain technology, advocating for a more supportive approach toward the industry.
The U.S. banking sector experienced significant turmoil between March and August 2023, with several banks catering to crypto businesses—such as Silvergate, Signature, and Silicon Valley Bank—collapsing. However, Customers Bank managed to remain stable during this period, continuing to serve its crypto clients despite a cap on CBIT deposits at 15% of its total deposits.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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