Former Solicitor General Donald B. Verrilli, who now works as the senior legal strategist for Grayscale Investments, has voiced concerns about US regulators intentionally stifling the growth of the crypto industry through debanking practices. He, along with former Solicitor General Paul Clement, filed a joint amicus brief pointing out the regulatory challenges faced by digital asset firms.
The amicus brief was filed on behalf of Custodia Bank, which is currently appealing a Wyoming district court ruling that allowed the Federal Reserve to deny them a Master Account. Verrilli and Clement argued that the Office of the Comptroller of the Currency’s (OCC) informal guidance has placed stringent requirements on banks looking to engage with crypto firms, making it difficult for them to support the industry effectively.
Verrilli criticized the court’s decision in favor of the Fed, stating that it presents a significant obstacle to the growth of the crypto sector. His remarks, supported by Clement, reflect a broader bipartisan concern about the current regulatory approach towards digital assets. With the upcoming 2024 US elections approaching, digital assets have become a significant issue, influencing political discourse and voter behavior.
Former President Donald Trump has pledged to support the interests of digital asset traders and has even started accepting campaign contributions in cryptocurrencies. On the Democratic side, Robert F. Kennedy Jr. has also embraced cryptocurrencies, accepting crypto donations for his campaign. This growing political alignment with the crypto sector is viewed as crucial for mobilizing younger voters, who form a significant portion of the crypto user base.
According to a poll by the Crypto Council for Innovation (CCI), a candidate’s stance on digital assets is crucial for many voters, with 83% of those surveyed preferring candidates who advocate for clear regulations around cryptocurrencies. The increasing political engagement from industry stakeholders and voters interested in digital assets underscores the importance of supportive legislation for the crypto industry.
Crypto entities are gearing up to spend over $80 million on the upcoming elections, aiming to support allies and promote legislation favorable to the industry. This financial backing highlights the growing influence of the crypto industry in shaping political decisions and regulations.
The accusations made by former Solicitor General Donald B. Verrilli against US regulators regarding their practices towards the crypto industry shed light on the challenges faced by digital asset firms. The political landscape surrounding cryptocurrencies is evolving, with bipartisan support for the sector increasing as the elections draw near. It is imperative for regulators to adopt more adaptive regulations that foster innovation and competition within the crypto industry to maintain the United States’ competitive edge in the global market.
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