A US lawmaker has revealed a plan by the administration of Joe Biden to use the current chaos in the crypto industry to hinder its development in the country. The fortunes of several crypto companies have been on the downside for months as many government organizations are launching attacks on them. The most notable attack on US crypto companies is the one by the Securities and Exchange Commission, which is committed to seeing the downfall of the crypto industry in the country. Many crypto firms, such as Kraken, have been sanctioned, which was made to pay a whopping $30 million for breaking a rule.
The US lawmaker says all these are plans from the anti-Bitcoin US government to kill the crypto industry. Things haven't been going well for cryptocurrencies for the past few months. Although the market started the year well, it hasn't reached experts' expectations. The U.S. lawmaker Tom Emmer said Biden was riding on the disorganization of the crypto market to ensure he brings down the industry. This is evident in the stance of the Biden government on critical issues affecting crypto.
The pro-crypto lawmaker said the Federal Deposit Insurance Corporation (FDIC) has been all over banks that support crypto transactions and is trying to pressure them into withdrawing their support. The lawmaker shared a letter on Twitter, which he sent to the Federal Deposit Insurance Corporation (FDIC) Chairman Gruenberg.
Regulators Making Anti-Crypto Moves
According to U.S. lawmaker Tom Emmer, several regulatory bodies in the United States have been making policies and rules limiting the development of the crypto industry. During a Fox Business interview, Emmer argued that the allegations that crypto firms were responsible for the failure of Signature Bank were false. The lawmaker said the only service Signature Bank provided to crypto firms was routine banking services and nothing else. Emmer said the head of New York’s financial services department has already admitted that the crypto industry had nothing to do with the closure of the signature bank.
"The decisions made over the weekend had nothing to do with crypto…The decision to take possession of the bank and hand it over to the FDIC was based on the current status of the bank and its ability to do business in a safe and sound manner on Monday," the head of New York's financial services department admitted. Before this statement, Signature board member and former U.S. representative Barney Frank had previously said the closure of Signature Bank was crypto-related.
According to. Barney Frank, Signature Bank was closed to send anti-crypto statements to other financial institutions. "We had no indication of problems until we got a deposit run late Friday, which was purely contagion from SVB. I think part of what happened was that regulators wanted to send a very strong anti-crypto message. We became the poster boy because there was no insolvency based on the fundamentals" Barney Frank said during a phone interview with CNBC.
On Twitter, the VP of Research at Bitcoin mining firm Riot Platform Pierre Rochard was in agreement with what Emmer was saying. According to him, the federal government has been using different agencies to fight against the crypto industry. "It does look like the Fed is abusing regulatory mechanisms to engage in anti-competitive monopolist behavior," Rochard said.