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Donald Verrilli, U.S. solicitor general during Barack Obama’s era and Grayscale’s top legal strategist, has accused federal regulators of trying to debank crypto. Source: X.com Donald made his accusations in an amicus brief alongside Paul Clement, who was the solicitor general during George W. Bush’s era. In the amicus brief, Donald and Paul represent Blockchain Association in support of an appeal from Custodia Bank. After a March decision in the District Court of Wyoming, Custodia appealed to the Tenth Circuit. They challenged the Federal Reserve’s decision to deny the bank access to a master account. Source: Digital Chamber The Fed is a threat to crypto Donald believes that the Fed’s action sets a very dangerous precedent. He added that the Office of the Comptroller of the Currency (OCC) has issued informal guidance that restricts banks’ ability to engage with crypto firms. This empowers federal regulators’ mission to debank the industry. “Despite the digital asset industry’s pressing need for banking services, federal regulators have waged a concerted, coordinated campaign to debank the industry.” — Donald Verrilli The guidelines are not even official, says Donald. They force ridiculously strict requirements for the banks, deliberately making them hard to meet. The brief argues that this is the real reason why the industry has been unable to properly take off in the country. Economists have warned that without adaptive regulations, the U.S. will lose its competitive edge in the global crypto market. The country is already losing its influence on traditional finance thanks to efforts from Russia and China. SEC might cost Biden the election Still, though. With the presidential election incoming, bipartisan support for crypto-friendly policies look more possible than ever. That has not stopped Gary Gensler’s SEC from stomping on crypto-centered companies like Coinbase, Rippe, Tether, and Consensys. Though he has approved…

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Filed under: News - @ July 6, 2024 7:16 pm