The recent regulatory action taken by the US Federal Reserve against Customers Bank has raised concerns within the crypto community. The Fed’s move comes after allegations that the bank violated several financial regulations, including the Bank Secrecy Act and Anti-Money Laundering laws, due to its involvement with digital assets.
Operation Chokepoint 2.0 Resurfaces
Tyler Winklevoss believes that Operation Chokepoint 2.0 is making a comeback, with the Fed’s enforcement action against Customers Bank being a clear indicator of this. He argues that the Biden administration’s policies are designed to weaken the crypto industry, and the recent regulatory actions are a part of this agenda.
Centralization of Decision-Making
Winklevoss highlights how the Fed’s latest enforcement action centralizes decision-making in the banking sector. Customers Bank is now required to seek approval from the Fed before entering into any new relationships with crypto companies. This centralized approach removes discretion from individual banks and places the Fed as the gatekeeper for the industry.
Winklevoss warns that the current regulatory actions are just the beginning, and if Vice President Kamala Harris wins the upcoming election, more severe measures could be put in place. He suggests that the Fed is playing nice for now, but if Harris wins, the gloves will come off, leading to potentially damaging consequences for the crypto industry.
The anti-crypto policies of the Biden-Harris administration could have a detrimental effect on the industry if they continue for another four years. Winklevoss cautions that the current regulatory measures are only the start, and harsher actions could follow if the administration remains in power. It is crucial for the crypto community to stay vigilant and advocate for more principles-based regulation to protect the industry’s interests.