With the shutdown of the pro-crypto banking firm Silvergate Bank, several experts have speculated that the US government is purposefully targeting the crypto sector.
On Thursday, Tom Emmer, a United States House member, said that the government headed by Joe Biden looks to be “weaponizing market instability to destroy crypto.” Consequently, he decided to investigate the matter further by writing an investigation letter to the Chairman of the Federal Deposit Insurance Corporation (FDIC).
Emmer exposes Silvergate’s anti-crypto stance
In an interview with Fox Business News, Emmer cited two sources who reported that any company buying Silvergate Bank must sign an undertaking prohibiting it from facilitating cryptocurrency transactions. Emmer made this statement after he was asked about the possibility of a company buying Silvergate Bank.
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
Additionally, Congressman Emmer supported his position by referring to a recent decision by the Federal Reserve (FED) to introduce a new immediate payment system known as FedNow. Emmer said the government intended to compete with private firms, particularly in the cryptocurrency industry.
Pierre Rochard, vice president of research at Riot Platforms, observed that “the FED is exploiting regulatory authorities to engage in anti-competitive monopolist activity.”
On March 13, Messari’s founder Ryan Selkis argued that the NYDFS had acted out of line by shutting down Signature Bank, which he claimed was still solvent despite the $12 billion bank run. Selkis’ remarks contradict the NYDFS’ position, which denies any relationship between the bank’s closure and cryptocurrencies.
US Govt’s crackdown on crypto could cripple Web3 future
Blockchain lawyer John Deaton warned that the United States would lose out on the Web3 revolution due to the government’s effort to restrict cryptocurrency.
Such a misstep. Crypto isn’t going away except away from the United States. At the same time the U.S. Government attempts to snuff out Crypto, USD dominance is weakening and soon the money printer will be back on. This is when the U.S. should be rushing to assure it leads the 🌎 https://t.co/tNXu47mVVM
— John E Deaton (@JohnEDeaton1) March 12, 2023
The crypto lawyer insisted that cryptocurrencies are here to stay, and the United States runs the danger of slipping behind in the race to lead the revolution in cryptocurrency.
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