Policymakers Are Urged By VanEck Advisor To Take Action Against Banks in the Anti-Crypto Crusade
Recently, adviser Gabor Gurbacs of Bitcoin ETF issuer VanEck entered the continuing conflict between the banking industry and cryptocurrency firms. He urged lawmakers to take action against what they see as US banks’ unfair behavior. The statement made by Caitlin Long, the founder and CEO of Custodia Bank, which is embroiled in a legal battle with the Federal Reserve, served as the impetus for this call to action.
Policymakers Are Called by VanEck Advisor
Long said that a deliberate attempt is being made in the US to “debank” fintech and cryptocurrency businesses in a post on X. Gurbacs reflected Long’s opinions, confirming her assertions. “I can also confirm that US banks are silently de-platforming businesses that have anything to do with cryptocurrency, including services,” he said.
Moreover, Gurbacs dubbed the purported activities “Operation Chokepoint 2.0,” bringing comparisons to the contentious Operation Chokepoint. The VanEck strategist made a direct appeal to legislators, pleading with leaders like Senator Cynthia Lummis, Tom Emmer, and Warren Davidson to look into these activities in public. He emphasized how crucial it is to hold banks and government organizations responsible for their discriminatory actions.
Gurbacs also said that “those responsible for discriminatory bank account closures should be held accountable.” Furthermore, drawing attention to the possible legal ramifications, the VanEck adviser cited the FDIC’s 2019 Operation Chokepoint litigation settlement. He implied that this agreement may be broken by the banks’ alleged conduct.
In addition, he urged congressmen and senators to oppose these actions. It is important for “senators and congressmen to speak up for the people,” stressed the VanEck strategist.
Federal Reserve v. Custodia Bank
At first, Federal Reserve power over master account applications was questioned by Justice Scott Skavdahl, who was presiding over the Custodia Bank v. Federal Reserve case. He eventually changed his mind, though, and began to support the Federal Reserve. He said that the Fed does, in fact, have the authority to make final decisions according to legal requirements.
Judge Skavdahl said in his final decision that the Fed is not required by federal law to provide master account access to every applicant. He underlined the danger of granting unrestricted access, which can trigger a “race to the bottom” in regulations. Despite the legal setback, Custodia Bank stated that it was committed to pursuing its goal for safe technology banking and was exploring all available alternatives, including an appeal, to deal with the fallout from the court’s ruling.
