Donald Verrilli Says US Is ‘Debanking Crypto’

Donald B. Verrilli, former Attorney General under the Obama administration, has spoken out about cryptocurrency regulation in the United States. Connected to Grayscale Investments, Verrilli has firsthand experience in addressing the cryptocurrency regulation bottleneck in the country.

Cryptocurrency Regulation: Debanking Crypto Innovators

Fox Business reporter Eleanor Terrett highlighted Donald Verrilli’s opinion, referring to the legal dispute over Custodia Bank in the United States. We recall that Custodial Bank and Federal Reserve they are clashing over the latter’s failure to issue a Master Account to the former.

The immediate ruling in the case favored the Federal Reserve, however, the case is far from over. According to Verrilli, the U.S. Office of the Comptroller of Currency (OCC) may have a hand in this. In a statement co-written with Paul Clement, President Bush’s attorney general, the duo shed light on the OCC’s directive to banks.

While the regulator labeled the guidance informal, it explicitly limited banks’ ability to do business with cryptocurrency firms. For an industry that is innovating at a rapid pace, Verrilli and Clement noted that the conditions surrounding crypto banking were daunting to meet.

With the duo stepping into the cryptocurrency regulatory fray, analysts believe the political terrain is shifting. While Eleanor Terrett blasted Verrilli and Clement’s stance, she acknowledged that they have clashed in the past over Supreme Court cases.

Market experts believe that the United States is going backwards and may need futuristic cryptocurrency regulation to get back on track.

Cryptocurrency exchanges in legal battle

The digital currency ecosystem is not exempt from the grip of the U.S. Securities and Exchange Commission (SEC). In Verrilli and Clement’s article, they cited Coinbase’s recent lawsuit against the SEC and the FDIC.

Despite Coinbase’s resistance, the SEC has continued to file lawsuits against major companies in the industry. The regulator currently has existing cases with Ripple Labs, Uniswap and more recently ConsensoSys among others.

The cryptocurrency ecosystem is more united than ever, and there are coalitions funding the upcoming US elections. The goal is to help more crypto-focused lawmakers win seats in Washington.

To know more: UK Labour Party Wins Polls as Poll Out: Is Labour Good for Bitcoin?

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