Biden Administration Using Market Chaos to Target Crypto, Says US Lawmaker
In a recent interview with Fox Business, U.S. lawmaker Tom Emmer accused President Biden's administration of weaponizing market chaos to kill the cryptocurrency industry.
Emmer, known for his pro-crypto stance, also sent an investigative letter to the Federal Deposit Insurance Corporation (FDIC) Chairman Gruenberg seeking additional information on the regulator’s actions against crypto-friendly banks.
It's clear the Biden administration is weaponizing market chaos to kill crypto.
This is why I sent an investigative letter to FDIC Chairman Gruenberg seeking additional information yesterday. pic.twitter.com/oPr3WLZtk3
— Tom Emmer (@GOPMajorityWhip) March 16, 2023
According to Emmer, the head of New York’s financial services department admitted that the decision to close Signature Bank had nothing to do with crypto.
He also referenced former U.S. lawmaker Barney Frank’s comments on the matter. Frank, a board member of Signature Bank, suggested that regulators may have taken control of the bank because of its interest in the crypto industry. However, New York regulators denied this claim, stating that they had been responsible for facilitating well-regulated crypto activities for several years.
Emmer also highlighted a Reuters report that suggested any buyer of Signature Bank must give up its crypto business. However, the FDIC has reportedly denied this report, stating that banks are not prohibited nor discouraged from providing their services to any sector.
Furthermore, Emmer pointed out that the Federal Reserve’s instant payments settlement system FedNow appears to be competing with private entities. FedNow is set to go live in July, allowing banks to process payments 24/7 and within seconds.
The timing on this is interesting.
The @federalreserve launching its own payment network that’s designed to “settle payments in seconds” the same year financial regulators are trying to quash the crypto industry? 🤔https://t.co/53r5S8idtF
— Eleanor Terrett (@EleanorTerrett) March 16, 2023
The VP of Research at Bitcoin mining firm Riot Platform, Pierre Rochard, agreed with Emmer’s view, stating that it looks like the Fed is abusing regulatory mechanisms to engage in anti-competitive monopolist behavior.
It does look like the Fed is abusing regulatory mechanisms to engage in anti-competitive monopolist behavior.
— Pierre Rochard (@BitcoinPierre) March 16, 2023
Emmer’s pro-crypto stance is not unique in Congress. Several lawmakers have recently introduced bills to support the cryptocurrency industry, including the proposed Cryptocurrency Act of 2020, which would clarify the roles of federal agencies in regulating cryptocurrencies.
Despite this, the cryptocurrency industry continues to face challenges from regulators and traditional financial institutions, who are concerned about its potential impact on the economy and financial stability.