U.S. Solicitor General exposes Biden's plan to debank crypto
Could the SEC's tough stance on crypto cost Biden the election? How are federal regulators affecting the crypto industry’?

Former U.S. Solicitor General Donald Verrilli, during Barack Obama’s administration, alongside Paul Clement, Solicitor General under George W. Bush, have accused federal regulators of attempting to debank the crypto industry. Verrilli and Clement represent the Blockchain Association. They argue that informal guidance from the Federal Reserve (Fed) and the Office of the Comptroller of the Currency (OCC) is crippling banks’ engagement with crypto firms.
“Despite the digital asset industry’s pressing need for banking services, federal regulators have waged a concerted, coordinated campaign to debank the industry.” - Donald Verrilli
In a March decision, the District Court of Wyoming ruled against Custodia Bank. The bank then appealed to the Tenth Circuit. They challenged the Fed's decision to deny it a master account. Verrilli emphasized that the Fed's actions set a dangerous precedent. He accused regulators of a concerted effort to debank the crypto industry by enforcing stringent requirements on banks.

The brief argues that these unofficial guidelines are the primary reason for the industry's stagnation in the U.S., with economists warning that the lack of adaptive regulations could erode the country's competitive edge in the global crypto market. The U.S. is already losing influence in traditional finance. It faces competition from countries like Russia and China.
With the presidential election approaching, bipartisan support for crypto-friendly policies is becoming more likely. Despite approving crypto-based ETFs, SEC Chair Gary Gensler’s aggressive stance against companies like Coinbase, Ripple, Tether and ConsenSys remains unchanged. Ripple CEO Brad Garlinghouse suggests Biden’s re-election could be jeopardized due to Gensler’s actions.
Donald Trump has positioned himself as the crypto-friendly candidate. He is gaining support from industry leaders such as the Winklevoss twins, Brian Armstrong and Garlinghouse. Trump’s public endorsement of Bitcoin and crypto companies contrasts sharply with Biden’s perceived lack of understanding of the industry.

Recently Biden hired Carole House. She is the former crypto advisor. This signaled a possible shift in his stance.
Verrilli’s amicus brief has sparked the #FireGaryGensler movement on Crypto Twitter. This highlights growing frustration within the crypto community. As the election nears, the administration’s position on crypto may significantly impact Biden’s chances.
The SEC's aggressive stance on crypto led by Gary Gensler, could negatively impact Biden’s re-election bid. Industry leaders are showing increasing support for Trump. They see him as a pro-crypto candidate. Biden’s recent moves suggest a potential shift in his crypto policy
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