Former U.S. Official Alleges Unfair Targeting of Crypto Industry by Regulators
A former U.S. government official, Donald Verrilli, alleges that federal regulators are unfairly targeting the cryptocurrency industry through a practice termed "debanking."
This accusation arose in Verrilli’s support of Custodia Bank’s appeal to the U.S. Tenth Circuit Court of Appeals. Custodia Bank, seeking a master account since October 2020, sued the Federal Reserve in June 2022 for delaying its application.
The Fed rejected Custodia’s request in 2023 due to its cryptocurrency ties, a decision upheld by a March 2024 court ruling.
Verrilli contends that federal banking regulators are systematically isolating the digital asset industry, referencing statements from agencies like the Federal Reserve questioning cryptocurrencies’ banking compatibility.
READ MORE: EU Extends Travel Rule to Crypto Exchanges
Support for Custodia’s appeal includes former Senator Pat Toomey, Wyoming Secretary of State Chuck Gray, and congressional banking committee members. Paul Clement, another former Solicitor General, supported Custodia, claiming regulatory bias.
The appellate court awaits a decision, potentially influenced by a recent Supreme Court ruling altering federal agency interpretations. Meanwhile, the U.S. House plans to reconsider a resolution on July 10 to overturn an SEC accounting rule affecting bank-crypto interactions.
In a positive development, the House recently passed the FIT21 Act with bipartisan support, aiming to establish clearer regulatory frameworks for U.S. digital asset markets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
