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Former Obama Attorney General Accuses Regulators of Deliberately De-Banking Cryptocurrency Firms
Former Attorney General Donald B. Verrilli, who served during the Obama administration, has accused U.S. regulators of intentionally stifling the cryptocurrency industry through debanking practices.
Verrilli, who now serves as senior legal strategist at Grayscale Investments, made the comments in a joint conference call friend of memories filed July 3 with Paul Clement, former attorney general under President George W. Bush.
The statement highlighted growing bipartisan concerns about the regulatory environment for digital activities and
Debanking Complaints
The amicus brief was filed on behalf of Custodia Bank, which is appealing a Wyoming district court ruling. court decision to give the Federal Reserve the discretion to deny him a Master Account.
In a joint statement with Clement, Verrilli suggested that the Office of the Comptroller of the Currency (OCC) has issued informal guidelines that effectively limit banks’ ability to interact with cryptocurrency firms.
It argued that these guidelines, while unofficial, set stringent requirements that are difficult for banks to meet, impacting their ability to support the growing cryptocurrency industry. Furthermore, the brief argues that such practices amount to a deliberate effort to debank the cryptocurrency industry, stifling competition and innovation.
Verrilli was particularly critical of the court’s decision in favor of the Fed, describing it as a significant setback for the cryptocurrency industry. His comments, supported by Clement, reflect broader bipartisan concerns about the current regulatory approach to the cryptocurrency industry.
Fox Business reporter Eleanor Terrett recently reported Verrilli’s perspective, highlighting the potential ramifications of the Fed’s decision. Some market analysts warn that without more adaptive regulation, the U.S. could lose its competitive edge in the global cryptocurrency market.
Terret added that Verrilli and Clement’s joint support for Custodia Bank signals a shift in the political landscape around cryptocurrencies, with bipartisan support growing as the November elections approach.
Growing influence
Digital assets are becoming a significant issue in the upcoming 2024 US elections, influencing both political discourse and voter behavior. The cryptocurrency industry has gained significant traction, with proponents pushing for more favorable regulations and greater acceptance among lawmakers.
This led to greater political commitment from both industry stakeholders and voters interested in digital assets, with key political figures and presidential candidates increasingly aligning themselves with the cryptocurrency sector.
Former President Donald Trump recently committed to supporting the interests of digital asset traders and has begun accepting campaign contributions in cryptocurrency. On the Democratic front, Robert F. Kennedy Jr. has also embraced cryptocurrency, with his campaign accepting donations in cryptocurrency and supporting the protection of Americans’ rights to use and own digital assets.
This growing political alignment is seen as crucial to mobilizing younger voters, who are typically more inclined to invest in cryptocurrency. According to recent data, Millennials and Gen Z make up a significant portion of the cryptocurrency user base, and their support could be crucial in a tight election.
A survey conducted by the Crypto Council for Innovation (CCI) found that a candidate’s stance on digital assets matters to many voters: 83% of respondents prefer candidates who advocate for clear regulation of cryptocurrencies.
Crypto entities, meanwhile, are preparing to spend over $80 million on the election, aiming to bolster allies and push for industry-friendly legislation. This has led to surprising bipartisan support for crypto-friendly legislation, with prominent figures like Senate Majority Leader Chuck Schumer and former House Speaker Nancy Pelosi emerging as unexpected allies.