Regulation
Efforts to “debank” cryptocurrencies in full swing? Here’s what’s happening
- Former Solicitor General Donald B. Verrilli criticizes regulators for targeting crypto with debanking efforts.
- Bipartisan support for cryptocurrency regulation is seen ahead of the 2024 US presidential election.
As the United States moves closer to the 2024 presidential election, a significant development has emerged regarding cryptocurrency regulation.
Former Obama administration Solicitor General Donald B. Verrilli has entered the debate.
Verrilli’s positive crypto perspectives
Fox Business reporter Eleanor Terrett, in her post X (formerly Twitter) dated July 5, pointed out Verrilli’s positionrevealing his criticism of regulators who intentionally target crypto for debanking.
He said,
“Despite the digital asset industry’s pressing need for banking services, federal regulators have waged a concerted and coordinated campaign to debank the sector.”
Further in the thread, Terrett highlighted Donald Verrilli’s take on the ongoing legal battle involving Custodia Bank and the Federal Reserve.
To put the dispute in context, it concerns the Federal Reserve’s refusal to grant Custodia Bank a master account.
Political change
Despite their historic disagreements in various Supreme Court cases, Verrilli and Paul Clement, a former solicitor general under President Bush, joined forces to support Custodia Bank’s legal challenge to the Federal Reserve.
They criticized informal guidance from the Comptroller of the Currency (OCC), which effectively prevents banks from engaging with crypto companies.
This alignment indirectly defends the cryptocurrency industry, marking a significant bipartisan position in the middle of their legal careers.
Reiterating the same, Terrett added:
“This is another indication of the changing political landscape around cryptocurrencies: they are enjoying growing bipartisan support as we approach the November elections.”
Gensler and Biden’s Anti-Crypto Measures
In recent months, the SEC’s continued scrutiny of high-profile companies such as Ripple [XRP]Coinbase and Consensys have attracted a lot of criticism.
Needless to say, many believe that anti-crypto sentiment is not limited to President Joe Biden but also extends to SEC Chairman Gary Gensler.
This feeling was underlined by Gensler’s Recent Remarkswhere he declared,
“Cryptocurrencies represent only a small part of our overall markets. But they represent a significant part of the scams, frauds and problems in the markets.”
However, not everyone believes that cryptocurrency will be a partisan issue in the upcoming election. Mike NovogratzFounder and CEO of Galaxy Digital,
“Cryptography should be bipartisan and it must be bipartisan.”
And, thus adopting an impartial position, he expressed it very well when he said:
“No matter who wins the next election, we will have positive legislation on cryptocurrencies, I am sure of it.”