Originally published on: August 10, 2024
**Introduction:**
The recent enforcement measures taken by the United States Federal Reserve on Customers Bank, known for its crypto-friendly approach, have raised doubts within the cryptocurrency industry about the sincerity of Vice President Kamala Harris’ presidential campaign promises of better relations with crypto.
**The Fed’s Regulatory Action:**
Gemini co-founder Tyler Winklevoss publicly critiqued the Federal Reserve’s 13-page enforcement action against Customers Bank, signaling the continuation of what he termed as “Operation Choke Point 2.0.” Winklevoss alleged that this move by the Fed exposed the insincerity behind the Harris campaign’s touted crypto ‘reset.’
**Implications for the Crypto Industry:**
Highlighting the significance of the Fed’s actions, Winklevoss emphasized that Customers Bank stands as one of the few remaining crypto-friendly banking institutions in the US. The stringent regulations now imposed on banking relationships with crypto firms significantly constrain their operational capabilities, limiting access to essential banking services.
**Industry Criticism and Concerns:**
Critics like Winklevoss have raised concerns over the centralized decision-making power wielded by the Federal Reserve, arguing that such authority should be decentralized across the banking sector, empowering individual banks to make their own choices.
**Industry Figures’ Perspectives:**
Cardano founder Charles Hoskinson echoed sentiments suggesting that the current US administration, including President Joe Biden and Vice President Harris, maintains a hostile stance towards the crypto industry. Hoskinson cautioned that supporting Harris’ candidacy could perpetuate what he perceives as an ongoing “war on crypto.”
**Advocacy for Progressive Policy:**
A group of US lawmakers and congressional candidates amplified the call for progressivism in digital asset and blockchain technology regulations. Sent in a letter to the Democratic National Committee Chair, this plea reflects a growing demand for a more favorable regulatory environment for the crypto sector.
**Turbulent Times in the Banking Sector:**
The US banking sector witnessed significant upheavals between March and August 2023, with notable banks like Silvergate Bank, Signature Bank, and Silicon Valley Bank facing challenges due to their relations with crypto businesses.
**Conclusion:**
The evolving regulatory landscape underlines the increasing tensions between the crypto industry and regulatory authorities. As stakeholders navigate this complex environment, the industry remains vigilant about the potential impacts of regulatory actions on their operations and growth.
