The recent enforcement action by the United States Federal Reserve against the crypto-friendly Customers Bank has fueled speculation about Vice President Kamala Harris’ sincerity in improving relations with the cryptocurrency industry.
On August 9, Gemini co-founder Tyler Winklevoss took to X (formerly Twitter) to express his concerns. “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 stated.
The Federal Reserve’s 13-page enforcement action requires Customers Bank to give a 30-day advance notice before establishing any new banking relationships with cryptocurrency companies. Winklevoss pointed out the significant implications of this action, noting that Customers Bank is among the few remaining crypto-friendly banks in the U.S. He argued that the Federal Reserve is now effectively controlling which crypto companies can access banking services, thereby limiting their operational capabilities.
Winklevoss criticized the centralization of decision-making power within the Fed, asserting that such decisions should be decentralized and left to individual banks.
Cardano founder Charles Hoskinson echoed Winklevoss’s concerns, suggesting that the current U.S. administration, led by President Joe Biden, is hostile towards the crypto industry. Hoskinson warned that voting for Harris would be detrimental to the U.S. crypto sector, implying that she would continue what he perceives as a “war on crypto.”
In July, a group of U.S. lawmakers and congressional candidates sent a letter to Democratic National Committee Chair Jaime Harrison, urging party leaders to adopt a more progressive stance on digital assets and blockchain technology.
This comes amid a challenging period for the U.S. banking sector, which between March and August 2023, saw the collapse of several banks that had served crypto businesses, including Silvergate Bank, Signature Bank, and Silicon Valley Bank.
