Tyler Winklevoss, the co-founder of Gemini, has expressed deep concerns regarding the recent regulatory action taken by the US Federal Reserve against Customers Bank. He believes that Operation Chokepoint 2.0 is still very much alive and poses a significant threat to the crypto industry. Winklevoss points out that the Fed’s move was a response to alleged violations of various financial regulations by Customers Bank, particularly in relation to digital assets.
The Federal Reserve has mandated Customers Bank to strengthen its oversight, risk management, and compliance measures within a strict 60-day timeframe. This includes improving board oversight, BSA/AML compliance, and OFAC adherence. Additionally, the bank must now inform the Fed of any new initiatives or products with a 30-day notice before implementation. This centralized decision-making process has sparked concerns within the crypto community regarding the potential implications of such regulatory actions.
Over the past year, there have been growing concerns within the crypto industry regarding Operation Chokepoint 2.0. Many stakeholders have criticized it as a deliberate attempt by the Biden administration to stifle the growth of the industry. Winklevoss argues that the recent actions by the Federal Reserve clearly demonstrate how Operation Chokepoint 2.0 operates, centralizing decision-making and removing discretion from individual banks.
Winklevoss has issued a stark warning about the potential consequences of the Biden-Harris administration’s anti-crypto policies. He believes that if Vice President Kamala Harris wins the upcoming election and Elizabeth Warren remains a Senator, the regulatory measures currently in place could be just the beginning. Winklevoss suggests that the industry could face even harsher actions in the future if the current trends continue.
Tyler Winklevoss’s critique of the Federal Reserve’s regulatory action against Customers Bank sheds light on the growing challenges faced by the crypto industry. With concerns about Operation Chokepoint 2.0 and the Biden-Harris administration’s policies looming large, stakeholders in the industry must remain vigilant and prepared for potential challenges ahead. The implications of these regulatory actions could have far-reaching effects on the industry if not addressed appropriately.
