SEC for investors Last minute given ETH ETF approval It was a sign of change of attitude, but the problems remain. The regulatory crackdown is like throwing the crypto industry into the sea with its hands and feet tied by the hand of uncertainty. The Biden administration is trying to strangle the crypto industry in America with the SEC and other institutions.
Custodia Bank is Downsizing
The US central bank provides banking services to crypto companies, and there are not many companies that do this. On the subject of ETFs JPMorgan and others make things easier, but they provide services to giants like BlackRock. So where will other cryptocurrency companies get their banking services from? Of course Custodia Bank from much smaller alternatives like. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
However Biden The administration is trying to strangle this place with the Federal Reserve Bank. The Fed is blocking the bank’s main account status, which is required for access to the Fed’s liquidity facilities, including payment services to authorized institutions. This allows the bank to rely on intermediary institutions for support for its activities, thus significantly increasing its costs.
The bank, which had to lay off nine of its 39 staff, is citing what the federal government is calling “Operation Chokepoint 2.0,” which the Biden administration has morphed into a coordinated effort to cut the sector off from the broader banking system. Custodia founder Caitling Long said the following about the operation, which began during the Obama administration:
“Operation Choke Point 2.0 has been devastating for the law-abiding U.S. crypto industry, and Custodia Bank has been hit hard despite our strong risk management and compliance record. We are working to properly scale to remain operational while preserving our capital until Operation Choke Point 2.0 is over or our Fed lawsuit is successful.”
Biden Administration and Crypto
Although the ETH ETF approval is a good step, Kamala Harris has not taken any concrete steps despite Trump’s extreme pro-crypto stance. Moreover, the pressure from the Biden administration continues. This includes the OpenSea NFT including the Wells notice the platform received from the SEC this week. The SEC views NFTs as securities and investment contracts, and has filed lawsuits similar to those it has filed against exchanges for altcoins. OpenSea is preparing to launch on its platform.
At the same time DeFi The legal pressure on the giants and centralized exchanges continues. So aren’t works of art exempt from being considered securities according to the pre-1980 decision? Yes, but the complicated 100-year-old rules create an environment that is extremely suitable for the SEC to strangle the industry with the courts.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
