Ah, my dear friends, gather ’round and let me tell you a tale of woe and wickedness in the world of cryptocurrency!
A Wall Street watchdog group, Better Markets, has come to the defense of US regulators, who have been accused of waging a nefarious campaign against crypto firms. This accusation, my friends, is as absurd as a three-legged cat trying to catch a fish!
The narrative in question was born from a US House Financial Services Committee (HSFC) hearing, where some lawmakers and crypto industry leaders claimed that certain financial regulators were attempting to debank crypto firms, colloquially called “Operation Choke Point 2.0.”
But fear not, dear readers, for Better Markets banking policy director Shayna Olesiuk has come to the rescue! In a written statement, she criticized the aforementioned narrative, stating that the Federal Deposit Insurance Corporation (FDIC) was merely responding to fintech companies making false and misleading statements about deposit insurance coverage.
The hearing in question seemed to be based on some crypto industry executives claiming to have been cut off from traditional banking services due to their ties to digital assets. The FDIC, however, maintains that the 22 letters they sent to crypto firms starting in 2022 were not binding but rather warnings about potential enforcement action.
Olesiuk further explained that the current banking rules put limits on the amount of information on the reasons for a bank account closure that can be shared publicly. She suggested that if banks were required to specify the reason for an account closure, there would be less chance of misunderstanding or jumping to conclusions about malicious intent or discrimination when an account is closed.
Coinbase chief legal officer Paul Grewal and MARA CEO Fred Thiel provided written statements for the Feb. 6 hearing, suggesting that the FDIC responded with regulatory overreach and a lack of transparency. On Feb. 5, US lawmakers with the Senate Banking Committee held a similar hearing, including claims that the Securities and Exchange Commission used its authority to influence banks providing services to crypto companies.
Both House and Senate hearings followed the FDIC under acting chair Travis Hill, a Donald Trump appointee, releasing 790 pages to the public showing correspondence between the federal agency and financial institutions with crypto clients. A US District Court released other letters in December 2024 in response to a Freedom of Information Act lawsuit led by Coinbase.
So, my dear friends, let us not be swayed by the cries of the crypto crusaders. For it seems that the regulators are simply doing their job, ensuring that the world of finance remains a safe and stable place for all.
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2025-02-06 22:36