Tyler Winklevoss, co-founder of the crypto exchange Gemini, recently criticized the Federal Reserve’s crackdown on Customers Bank, a crypto-friendly bank. He believes that this enforcement action is part of what he calls “Operation Choke Point 2.0” and warns of potential worsening situations if Vice President Kamala Harris wins the election in November.
The Federal Reserve issued a 13-page enforcement action against Customers Bank, requiring the bank to provide written notice to the Reserve thirty days before establishing new banking relationships with crypto firms. Winklevoss expressed his concerns about this action, stating that it creates a choke point for crypto companies, as the Federal Reserve now acts as a gatekeeper in deciding who can access banking services.
In his post, Winklevoss criticized the Federal Reserve’s allegations of deficiencies in risk management practices and anti-money laundering compliance at Customers Bank as vague and unsubstantiated. He believes that the Reserve’s true motive is to control the bank’s decision-making process and limit its ability to serve certain industries.
Winklevoss also warned that this enforcement action is just the beginning, suggesting that if Harris becomes the president, the situation could worsen. He sees the Federal Reserve’s actions as a way to gain control over the banking industry and limit the autonomy of banks in deciding which industries to serve.
Overall, Winklevoss’s criticism highlights the ongoing regulatory challenges faced by the crypto industry and the potential implications of government intervention on financial institutions supporting cryptocurrencies. His insights shed light on the complexities of regulatory oversight in the evolving landscape of digital assets and financial services.