Harris campaign’s crypto ‘reset’ questioned amid Fed crackdown

Amaka Nwaokocha13 hours agoHarris campaign’s crypto ‘reset’ questioned amid Fed crackdownCritics argue that the US Federal Reserve’s actions are a significant overreach and could stifle innovation in the cryptocurrency sector.5082 Total views22 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe enforcement action taken by the United States Federal Reserve against the crypto-friendly Customers Bank has sparked speculation that Vice President Kamala Harris’ presidential campaign may not be genuine in its efforts to mend relations with the cryptocurrency industry.

On Aug. 9, Gemini co-founder Tyler Winklevoss took to X to highlight the Fed’s actions. “Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto ‘reset’ is a scam,” Winklevoss said.Crypto banking crackdown

The Fed’s 13-page enforcement action against Customers Bank mandates it to provide a 30-day advance notice before entering any new banking relationship with a cryptocurrency company.

Winklevoss highlighted the broader implications of the enforcement action, stating that Customers Bank is one of the few remaining crypto-friendly banks in the United States. He said that the Federal Reserve is now controlling access to banking services for crypto companies, essentially deciding who can and cannot open a bank account, thereby limiting their ability to operate.Source: Tyler Winklevoss

He criticized the centralization of decision-making power within the Fed, arguing that such decisions should be decentralized across the banking industry and made at each bank’s discretion.Hoskinson joins Winklevoss

In response to Winklevoss’ statement, Cardano founder Charles Hoskinson echoed the sentiment that the current US administration is hostile toward the crypto industry.

Related:Federal Reserve Board drops enforcement action against Silvergate

Hoskinson believes President Joe Biden’s administration is actively working against the crypto industry, and this stance has not changed. He warns that voting for Harris would harm the US crypto industry, implying that she would continue this perceived “war on crypto.”

In a letter sent to Democratic National Committee Chair Jaime Harrison in July, a group of US lawmakers and congressional candidates from various districts called on party leaders to adopt a progressive stance on digital assets and blockchain technology.

Between March and August 2023, the US banking sector faced a tumultuous period marked by the downfall of several banks that catered to crypto businesses, including Silvergate Bank, Signature Bank and Silicon Valley Bank.

Magazine:Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan.: Hodler"s Digest# Bitcoin# Cryptocurrencies# Federal Reserve# Law# Banking# Banks# RegulationAdd reaction