- Former Solicitor General Donald B. Verrilli criticizes regulators for targeting crypto with debanking efforts.
- Bipartisan support for crypto regulation is seen ahead of the 2024 U.S. presidential election.
As a researcher with a background in finance and law, I find the current state of crypto regulation in the United States intriguing. With former Solicitor Generals Donald B. Verrilli and Paul Clement joining forces to support Custodia Bank’s legal challenge against the Federal Reserve, it is clear that there is a shift in political sentiment towards the cryptocurrency industry.
With the 2024 US presidential election drawing near, a noteworthy turn of events has surfaced in relation to cryptocurrency regulations.
During the Obama Administration, Donald B. Verrilli, who previously served as the Solicitor General, has joined the ongoing debate.
Verrilli’s positive crypto outlook
In a post on X, formerly Twitter, on July 5th, Fox Business journalist Eleanor Terrett brought attention to Verrilli’s perspective, sharing his disapproval of regulators deliberately shutting down cryptocurrency companies through debanking.
He said,
As a researcher examining the intersection of digital assets and banking services, I’ve noticed a significant demand from the digital asset industry for access to traditional financial services. Surprisingly, however, federal regulators have launched a determined and synchronized effort to deny these services, resulting in a debanking trend within the industry.
In the continuation of the discussion, Terrett brought up the viewpoint of Donald Verrilli regarding the ongoing legal conflict between Custodia Bank and the Federal Reserve.
The issue at hand centers on the Federal Reserve’s decision not to provide Custodia Bank with a Master Account.
Political shift
In spite of past disputes between them in different Supreme Court matters, Verrilli and Clement, the former Solicitor General under President Bush, have united to back Custodia Bank’s lawsuit against the Federal Reserve.
As a financial analyst, I would express this criticism in the following way: I’ve taken issue with the OCC’s informal guidance that has put a damper on banks collaborating with cryptocurrency firms. This restriction, though unofficial, is still impactful and limits the potential growth of banking relationships within the crypto industry.
As a researcher studying the intersection of law and cryptocurrencies, I’ve observed an intriguing development: this alignment between prominent figures from both political parties subtly endorses the industry. Their shared stance marks a notable shift towards acknowledgment and acceptance within the legal community.
Reiterating the same, Terrett added,
“Another sign emerges of crypto’s evolving political climate: it’s securing broader approval from both Democratic and Republican parties ahead of the November elections.”
Gensler’s and Biden’s anti-crypto moves
As a financial analyst, I’ve noticed that there has been increasing attention from the Securities and Exchange Commission (SEC) towards notable companies such as Ripple, Coinbase, and Consensys in recent months. This heightened scrutiny has sparked considerable debate among industry observers.
It’s worth noting that the criticism of cryptocurrencies isn’t only directed towards President Joe Biden but also extends to SEC Chairman Gary Gensler.
This sentiment was underscored by Gensler’s recent remarks, where he stated,
“Cryptocurrencies represent a minimal portion of the total market, yet they account for a disproportionate share of scams, frauds, and issues within the financial marketplaces.”
From my perspective as a researcher, while some individuals hold the view that cryptocurrency isn’t a significant factor in the forthcoming election, Mike Novogratz, the founder, and CEO of Galaxy Digital, disagrees.
“Crypto should be Bipartisan and it needs to be Bipartisan.”
And, hence taking an impartial stance, he put it best when he said,
As a researcher closely following the political landscape, I have confidence in predicting that regardless of the outcome of the upcoming election, favorable cryptocurrency legislation will be enacted.
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2024-07-05 18:19