Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Scott Johnsson of Van Buren Capital on Friday highlighted numerous regulatory actions taken by the Biden administration and Democrats, which he claims are stifling the growth of the cryptocurrency industry.
JWhat Happened: Johnsson’s commentary includes expansive definitions of securities, enforcement actions against major crypto entities and various policy maneuvers that could significantly impact the industry.
What the Dems/Biden admin are STILL doing:Key points of contention include the refusal by the Office of the Comptroller of the Currency (OCC) to implement the “fair access” banking rule, aggressive SEC enforcement actions against Coinbase Inc. (NASDAQ:COIN), Binance (CRYPTO: BNB), and Kraken, and the issuance of Wells Notices to prominent firms like Consensys and Uniswap Labs (CRYPTO: UNI).– OCC refuses to enact Brian Brooks' "fair access" banking rule to prohibit federally chartered banks from denying financial services such as lending to would-be clients on political or ideological grounds.
– Enforcement actions against…
— Scott Johnsson (@SGJohnsson) May 30, 2024
Additionally, the SEC's new rules incorporate decentralized finance (DeFi) into expansive regulatory frameworks, which Johnsson argues were applied without proper adherence to the Administrative Procedures Act.
Furthermore, Johnsson criticizes the Treasury for inserting “broker” language into must-pass legislation without debate, leading to IRS rules that he claims violate constitutional amendments and risk banning DeFi in the U.S.
He also points to the Department of Justice's (DOJ) actions against crypto privacy tools like Tornado Cash and Samurai Wallet, viewing these as overreaches that threaten innovation and privacy.
The Federal Reserve and other banking regulators have also come under fire.
Johnsson notes the Federal Reserve’s denial of crypto bank Custodia’s application for membership and master account, and joint statements from the Federal Reserve, FDIC, and OCC warning of the risks associated with banks engaging with crypto assets.
These actions, he suggests, contribute to an environment where banks are discouraged from dealing with cryptocurrencies, despite an increasing number of Americans using digital assets.
Johnson concludes that there is a “long way left to go before anyone in this space trusts that Dems are actually turning the corner.”
Also Read: Bitcoin Spot ETFs See $48M Inflow As Ethereum Spot ETF Trading Draws Nearer
Experts Offer Varied Perspectives
Leona Hioki, Co-founder of INTMAX, emphasizes the importance of maintaining privacy while preventing criminal misuse, suggesting that governments and cryptographers should cooperate without compromising individual privacy.
Eskil Tsu, Co-founder of GoPlus, supports transparency but stresses the need for balanced regulations that do not stifle privacy or innovation.
Iva Wisher, Co-founder & COO of Prom, acknowledges the necessity of regulatory frameworks, indicating that Brian Nelson's recent comments on crypto mixers reflect a balanced approach to market transparency and financial system health.
As the regulatory environment evolves, industry leaders and policymakers will converge at the Benzinga Future of Digital Assets event on Nov. 19.
This event will provide a platform for in-depth discussions on these issues, offering insights into the future of digital asset regulation and its implications for the crypto industry.
Read Next: ‘Crypto Mom’ Hester Peirce Proposes US-UK ‘Digital Securities Sandbox’ For Blockchain Innovation
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