In a recent social media post, Tyler Winklevoss, co-founder of Gemini crypto exchange, criticized what he called the “reset” of Vice President Kamala Harris’ stance on crypto as a “scam”. This comes on the heels of the Federal Reserve’s crackdown on Customers Bank, a crypto-friendly institution. Winklevoss’s post comes after he expressed disappointment in Harris for not participating in a roundtable discussion with crypto leaders.
The Federal Reserve issued a 13-page enforcement action against Customers Bank, which included a requirement for the bank to provide thirty days notice before establishing new relationships with crypto firms. Winklevoss argues that this action essentially creates a choke point, making the Federal Reserve a gatekeeper for crypto companies seeking to open new accounts. This centralized decision-making process goes against the principles of autonomy that banks should have in serving their customers.
While the Federal Reserve cited deficiencies in Customers Bank’s risk management practices and anti-money laundering compliance, Winklevoss dismisses these allegations as vague and lacking evidence. He points out the lack of concrete facts backing up the enforcement action and calls for more transparency in the regulatory process. Without clear evidence, Winklevoss questions the motives behind the Federal Reserve’s actions.
Winklevoss goes further to suggest that the Federal Reserve’s real intention is to gain control over Customers Bank’s decision-making processes. He believes that the ultimate goal is to unlawfully dictate which companies and industries the bank can serve. This power grab, according to Winklevoss, is a dangerous precedent that could lead to excessive control by regulatory authorities.
In a foreboding statement, Winklevoss warns that if Harris wins the upcoming election, the situation could escalate further. He suggests that the current enforcement action by the Federal Reserve is just the beginning and implies that more aggressive measures could be taken if the political landscape shifts. This warning serves as a call to action for those concerned about the increasing regulatory scrutiny faced by the crypto industry.
Tyler Winklevoss’s analysis of the Federal Reserve’s crackdown raises important questions about regulatory overreach and the potential impact on the crypto industry. By scrutinizing the motives behind the enforcement action and highlighting the lack of transparency in the process, Winklevoss challenges the narrative put forth by regulatory authorities. His warnings about the future implications of these actions serve as a reminder of the ongoing battle between regulators and innovators in the crypto space.
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