Former Solicitor General Donald B. Verrilli, in his role as the senior legal strategist for Grayscale Investments, has made serious accusations against US regulators. He claims that regulators are intentionally stifling the growth of the crypto industry through debanking practices. Verrilli’s concerns were highlighted in a joint amicus brief filed with Paul Clement, another former Solicitor General under President George W. Bush.
The amicus brief was filed on behalf of Custodia Bank, which is currently appealing a Wyoming district court’s decision. The decision granted the Federal Reserve the discretion to deny Custodia Bank a Master Account. Verrilli and Clement argue that the Office of the Comptroller of the Currency (OCC) has issued informal guidance that effectively restricts banks’ ability to engage with crypto firms. These guidelines, although not official, set strict requirements that are difficult for banks to meet. This has a direct impact on their ability to provide support to the growing crypto industry.
Verrilli and Clement emphasized that such practices are deliberate efforts to debank the crypto industry, ultimately stifling competition and innovation. The court’s decision in favor of the Federal Reserve has been described as a significant obstacle for the crypto sector. The concerns raised by Verrilli and Clement reflect a broader bipartisan worry about the current regulatory environment surrounding the crypto industry.
There is a growing shift in the political landscape surrounding cryptocurrencies. As the 2024 US elections approach, digital assets are becoming a significant issue influencing political discourse and voter behavior. Advocates for the crypto industry are pushing for more favorable regulations and greater acceptance among lawmakers. This has led to increased political engagement from both industry stakeholders and voters interested in digital assets.
Key political figures and presidential candidates are increasingly aligning themselves with the crypto sector. Former President Donald Trump has pledged to support the interests of digital asset traders and has begun accepting campaign contributions in cryptocurrencies. On the Democratic side, Robert F. Kennedy Jr. has also embraced cryptocurrencies, with his campaign accepting crypto donations. This growing political alignment is crucial for mobilizing younger voters, who are more inclined to invest in cryptocurrencies.
Recent data shows that Millennials and Generation Z make up a significant portion of the crypto user base. Their support could be pivotal in close elections. A poll conducted by the Crypto Council for Innovation found that a candidate’s stance on digital assets is important to many voters. 83% of those surveyed prefer candidates who advocate for clear crypto regulations. Crypto entities are preparing to spend over $80 million on the elections to boost allies and promote legislation favorable to the industry.