Kamala Harris’s Crypto Loathing Comes Out in Open

YEREVAN (CoinChapter.com) — Does Kamala Harris hate the crypto sector? While the Democrat has so far excused herself from speaking about Bitcoin and other cryptocurrencies, the action of the United States Federal Reserve under the anti-crypto Joe Biden administration raises fears that she will not be any different.

Fed Goes Berserk Against a Crypto-Friendly Bank Ahead of U.S. Presidential Elections

Notably, the Fed initiated a crackdown against Customers Bank, a crypto-friendly institution, sparking speculation about the motives behind Vice President Kamala Harris’ presidential campaign and its approach to the cryptocurrency industry.

On Aug. 9, Tyler Winklevoss, co-founder of Gemini, weighed in on social media, suggesting that the Fed’s actions indicate “Operation Choke Point 2.0” is still in play. This has raised further questions about the government’s stance on crypto-friendly banks and its broader intentions toward the industry.

The enforcement action against Customers Bank includes a 13-page directive, requiring the firm to notify the Fed 30 days in advance before entering any new banking relationships with cryptocurrency companies.

Winklevoss highlighted that Customers Bank is one of the few U.S. financial institutions still working with crypto companies. He criticized the Federal Reserve for centralizing decision-making power. According to him, this control over banking access directly impacts the ability of crypto companies to operate in the U.S.

Crypto Community Doubts Kamala Harris Now

Charles Hoskinson, founder of Cardano, also commented on the issue. He expressed concerns that the current U.S. administration is not supportive of the crypto industry. Hoskinson warned that Harris’ election could further harm the sector, stating that the administration’s stance has not changed and remains unfavorable toward digital assets.

Both Winklevoss and Hoskinson’s statements have resonated with the crypto community, which is concerned about federal regulators’ actions. The enforcement action against Customers Bank has become a central point of discussion, with many questioning whether the Harris campaign’s proposed “reset” with the crypto sector is genuine.

Fed’s Tight Grip on Crypto Banks Amid Sector Turmoil

The Federal Reserve’s decision to impose strict conditions on Customers Bank comes during a challenging time for the U.S. banking sector. Between March and August 2023, several banks that served crypto businesses collapsed, including Silvergate Bank, Signature Bank, and Silicon Valley Bank. These events have made it more difficult for the crypto industry to find banking partners.

Winklevoss emphasized the need for decentralized decision-making power within the banking industry. He argued that each bank should have the autonomy to decide whether to engage with crypto companies rather than being controlled by the Federal Reserve.