The post Ex-Obama Solicitor General accuses regulators of intentionally debanking crypto firms appeared on BitcoinEthereumNews.com.

Former Solicitor General Donald B. Verrilli, who served during the Obama administration, has accused US regulators of intentionally stifling the crypto industry through debanking practices. Verrilli, who now serves as Grayscale Investments’ senior legal strategist, made the remarks in a joint amicus brief filed on July 3 with Paul Clement, the former Solicitor General under President George W. Bush. The statement highlighted growing bipartisan concerns about the regulatory environment for digital assets and Debanking claims The amicus brief was filed on behalf of Custodia Bank, which is appealing a Wyoming district court’s decision to grant the Federal Reserve discretion to deny it a Master Account. In a joint statement with Clement, Verrilli suggested that the Office of the Comptroller of the Currency (OCC) has issued informal guidance that effectively limits banks’ ability to engage with crypto firms. He argued that these guidelines, though not official, set stringent requirements that are difficult for banks to meet, impacting their ability to support the growing crypto industry. Additionally, the brief argues that such practices amount to a deliberate effort to debank the crypto industry, stifling competition and innovation. Verrilli was particularly critical of the court’s decision in favor of the Fed, describing it as a significant obstacle for the crypto sector. His comments, supported by Clement, reflect a broader bipartisan concern about the current regulatory approach toward the crypto industry. Fox Business journalist Eleanor Terrett recently reported on Verrilli’s perspective, noting the potential consequences of the Fed’s decision. Some market analysts warn that without more adaptive regulations, the United States could lose its competitive edge in the global crypto market. Terret added that Verrilli and Clement’s joint support for Custodia Bank signals a shifting political landscape around crypto, with bipartisan backing growing as the November election approaches. Growing influence Digital assets are becoming…

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Filed under: News - @ July 6, 2024 1:02 am