- The FED plans to launch a new instant payment system to compete with crypto.
- A crypto lawyer said crypto suppression in the US could draw the country behind.
Many experts have been theorizing that the US government is deliberately hunting down the crypto industry following the closure of the pro-crypto financial institution Silvergate Bank.
On Thursday, US Congressman Tom Emmer said the Biden-led administration appears to be “weaponizing market chaos to kill crypto.” Consequently, he sent an investigative letter to the Federal Deposit Insurance Corporation (FDIC) Chairman seeking additional information.
In an interview with Fox Business News, Emmer quoted two sources who reported that any company buying Silvergate Bank would have to sign an undertaking prohibiting it from facilitating crypto transactions.
Furthermore, Congressman Emmer buttressed his argument with the recent decision of the Federal Reserve (FED) to launch a new instant payment system, FedNow. Emmer claimed that the government wants to compete with private businesses, especially in the crypto sector.
Pierre Rochard, vice president of research at Riot Platforms, observed that “the FED is abusing regulatory mechanisms to engage in anti-competitive monopolist behavior.”
Ryan Selkis, the founder of analytic firm Messari, stated on March 13 that Signature was solvent despite the unprecedented coordinated $12 billion bank run, but “NYDFS [New York State Department of Financial Services] went rogue in shutting them down.” However, the NYDFS had said that the Signature Bank closure had nothing to do with crypto.
Notably, blockchain lawyer John Deaton warned that the US government’s attempt to suppress crypto could lead to the country missing out on the Web3 revolution.
The crypto lawyer maintained that crypto is not going away, and the US risks falling behind in the race to lead the crypto revolution.