The Biden administration's war on crypto has begun, and it'll likely make the banking crisis worse, CoinDesk Chief Insights Columnist DavidZMorris writes. Opinion for 'The Node' newsletter
, the payday lender Advance America said its lawsuit"uncovered how some FDIC leaders and officials executed a campaign motivated by personal scorn for our industry, contempt for our millions of customers and blatant disregard for due process. This settlement will help to prevent this disenfranchisement from happening again – to our business or any other legal, regulated business."
It seems highly plausible that similar targeted bias is at play in the FDIC’s recent actions. That may mean the agency faces another wave of official and legal backlash for its unauthorized initiative. But the damage – both intended and accidental – has already been done.The apparent interagency push to debank crypto firms is coming at a moment that is politically expedient but economically fraught.
But at the same time, rapid interest rate rises in response to inflation have fueled broad anxiety about the banking sector – anxiety that may have been compounded by the very moves intended to target crypto. In particular, the collapse of Silvergate Bank under regulatory pressure and attacks from figures including Sen. Elizabeth Warren may have primed fears that then led to a run on Silicon Valley Bank, which in turn fueled even broader fears.
There are other clear ironies here. Efforts to debank legal, regulated crypto companies in the U.S. would not have prevented FTX or other offshore frauds that have made the crackdown politically appealing. Meanwhile, the Securities and Exchange Commission and other agencies had more power to protect victims of U.S.-based alleged frauds such as Celsius Network, but failed to do so.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Swiss Banking Association: Credibility in Swiss banking has not been destroyed by the Credit Suisse crisisSwiss Banking Association: Credibility in Swiss banking has not been destroyed by the Credit Suisse crisis Switzerland Banks RiskAppetite DollarIndex
Read more »
8th Edition Connected Banking Summit - Innovation & Excellence Awards 2023 (formerly Digital Banking Summit)
Read more »
The reality behind bromance between Russia's Putin and China's XiThe lengthy huddle between the leaders of China and Russia reveals an increasingly desperate Putin and an opportunistic regime in Beijing.
Read more »
Kourtney Kardashian Barker reveals elaborate design process behind her Dolce & Gabbana wedding dressKourtney Kardashian Barker shared behind-the-scenes photos of her fitting, design meetings and sketches of the unique lace and satin corset mini dress.
Read more »
Credit Suisse fallout, banking crisis expose rising neobanksInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Key banking crisis lesson: 'The first line of defense should always be cash,' advisor saysThe collapse of Silicon Valley Bank and the banking crisis provide 'a great case study' for clients, advisor says. Here's what investors need to know.
Read more »