Tyler Winklevoss, co-founder of Gemini, recently took to X to criticize the crypto stance of Vice President Kamala Harris, calling it a “scam.” This comes after the Federal Reserve’s crackdown on Customers Bank, one of the only crypto-friendly banks in the U.S. Winklevoss believes that the enforcement action creates a choke point that ultimately hinders crypto companies’ ability to secure new bank accounts.

Principles-Based Regulation

In his critique, Winklevoss argued that the Federal Reserve’s intervention goes against the principles of decentralized decision-making in the banking industry. He emphasized that banks should have the autonomy to choose their clients, rather than having decisions centralized by the Fed. This shift, according to Winklevoss, marks the beginning of a dangerous trend that could lead to further control over the banking sector.

While the Federal Reserve cited deficiencies in Customers Bank’s risk management and anti-money laundering practices, Winklevoss dismissed these allegations as “non-allegation allegations.” He criticized the lack of concrete evidence to support the Fed’s claims, highlighting the vague and unsubstantiated nature of the enforcement action. This lack of transparency, he argued, erodes trust in the regulatory process.

The Sinister Motive

Winklevoss went further to suggest that the Federal Reserve’s true intention behind the crackdown is to exert control over Customers Bank’s decision-making processes. He posited that the Fed is using the enforcement action as a means to build a public case and ultimately gain unlawful control over which companies and industries the bank can serve. This, he warned, sets a dangerous precedent for the future of banking regulation.

In a chilling prediction, Winklevoss stated that the Federal Reserve’s actions are only a precursor to more aggressive measures if Harris wins the upcoming election. He hinted at a future where regulatory control over the banking industry is tightened, potentially limiting the growth and innovation of the crypto sector. Winklevoss implored the public to be vigilant and skeptical of such encroachments on financial freedom.

Through his critical analysis of the Federal Reserve’s crackdown on Customers Bank, Winklevoss sheds light on the hidden agenda behind the enforcement action. His warnings serve as a cautionary tale for the future of banking regulation and underscore the importance of preserving decentralized decision-making in the financial sector. As the crypto industry faces increasing scrutiny, it is crucial for stakeholders to remain vigilant and uphold the principles of transparency and autonomy in banking practices.

Regulation

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