The former Solicitor General Donald B. Verrilli has raised serious accusations against US regulators, accusing them of intentionally stifling the crypto industry through debanking practices. These allegations were made in a joint amicus brief filed on July 3 with Paul Clement, another former Solicitor General, pointing to bipartisan concerns about the regulatory environment for digital assets. The amicus brief was filed on behalf of Custodia Bank, which is currently appealing a Wyoming district court’s decision to give the Federal Reserve the discretion to deny it a Master Account.
Verrilli and Clement suggested that the Office of the Comptroller of the Currency (OCC) has issued informal guidance that effectively restricts banks’ ability to interact with crypto firms. The vague guidelines mentioned in the brief create obstacles that are hard for banks to overcome, thereby impacting their support for the crypto industry. These practices, according to the brief, represent a deliberate effort to debank the crypto industry, leading to stifled competition and innovation. Verrilli criticized the court’s decision in favor of the Fed and described it as a significant setback for the entire crypto sector, highlighting the need for more adaptive regulations.
The joint support shown by Verrilli and Clement for Custodia Bank signals a shifting political landscape concerning cryptocurrencies, with bipartisan backing gaining momentum as the November election approaches. There is a growing realization of the significant impact digital assets will have on the upcoming 2024 US elections, affecting political discourse and voter behavior. With the crypto industry gaining momentum, there is a push for more favorable regulations and increased acceptance among lawmakers, leading to heightened political engagement from industry stakeholders and voters interested in digital assets.
Both former President Donald Trump and Democratic figure Robert F. Kennedy Jr. have aligned themselves with the crypto sector, with Trump even accepting campaign contributions in cryptocurrencies. This trend of political figures supporting digital assets is essential for mobilizing younger voters, who constitute a substantial portion of the crypto user base. Recent polls indicate that candidates’ stance on digital assets plays a crucial role in voters’ decisions, with a significant majority preferring candidates who advocate for clear crypto regulations.
With the elections looming, crypto entities are gearing up to spend over $80 million to support allies and promote legislation favorable to the industry. This indicates a growing influence of the crypto sector in the political arena, with key players investing heavily to secure a conducive regulatory environment for the industry’s growth. The battle for crypto regulation is intensifying, and the outcome of the elections could have a profound impact on the future of the digital asset industry.