Two former U.S. politicians have jointly appealed a Wyoming district court's decision to uphold the Federal Reserve's refusal to open a primary account for them.
Donald B. Verrilli, former Attorney General during the Obama administration and currently a senior legal strategist at Grayscale Investments, has publicly criticized the de-banking measures taken by U.S. regulators, arguing that these measures intentionally restrict the development of the cryptocurrency industry.
Verrilli teamed up with Paul Clement, former attorney general during the George W. Bush administration, to make the argument in a friend-of-the-court brief filed July 3, reflecting bipartisan concerns about regulators’ practices.
Joint lawsuit seeks to change the crypto policy landscape
The amicus brief was filed on behalf of Custodia Bank in an appeal of a Wyoming district court's decision upholding the Federal Reserve's refusal to open a master account for the bank.
In the statement, Donald B. Verrilli, senior legal strategist at Grayscale Investments, and former Attorney General Paul Clement jointly pointed out that informal guidance issued by the Office of the Comptroller of the Currency (OCC) actually restricted banks' business dealings with cryptocurrency companies.
Verrilli and Clement believe that these guidelines, although unofficial, impose difficult-to-meet strict standards on banks, severely restricting the scope of their services to the cryptocurrency industry. They also emphasized that this practice not only hinders the development of banking business, but also inhibits competition and innovation within the industry.
Verrilli was particularly critical of the court’s ruling in favor of the Federal Reserve, calling it a significant obstacle for the cryptocurrency industry. His comments, which were supported by Clement, reflect widespread bipartisan concerns about the current way the cryptocurrency industry is regulated.
Fox Business News reporter Eleanor Terrett reported Verrilli’s views and highlighted the possible consequences of the Fed’s decision. Market analysts warned that if regulations fail to adapt to market changes, the United States may lose its competitive advantage in the global cryptocurrency market.
Terrett also added that Verrilli and Clement's support for Custodia Bank shows a shift in the political landscape in the cryptocurrency space, with bipartisan support for cryptocurrencies growing as the November election approaches. This change could have an important impact on the upcoming election, as the cryptocurrency industry has gained more and more political attention and support.
The political influence of digital assets
As the 2024 US election approaches, digital assets have become a political issue that cannot be ignored, shaping not only political discussions but also voters’ choices and behaviors. The cryptocurrency industry has received unprecedented attention, and its supporters are actively pushing for more favorable regulations and seeking broad support from lawmakers.
This trend has prompted industry stakeholders and voters interested in digital assets to become more politically active. Prominent politicians and presidential candidates, including former President Donald Trump, have begun voicing their support for digital asset traders and accepting cryptocurrency as campaign donations. Within the Democratic Party, Robert F. Kennedy Jr has also accepted cryptocurrency donations and advocated for protecting the rights of U.S. citizens to use and hold digital assets.
The strengthening of this political alliance, especially the mobilization of younger voters, is seen as crucial. Data shows that millennials and Generation Z make up a significant proportion of cryptocurrency users, and their political leanings could prove decisive in a tight election.
According to a poll by the Council for Cryptocurrency Innovation (CCI), a candidate’s stance on digital assets is extremely important to many voters, with 83% of respondents saying they would prefer to support candidates who have a clear stance on cryptocurrency regulation.
Meanwhile, entities in the cryptocurrency space plan to spend more than $80 million on the election in an effort to solidify allies and push for industry-friendly legislation. This spending has already spurred bipartisan support for crypto-friendly legislation, even making some high-profile politicians, such as Senate Majority Leader Chuck Schumer and former House Speaker Nancy Pelosi, unexpected allies of the industry.
Conclusion:
With Custodia Bank’s appeal and the filing of amicus briefs by Verrilli and Clement, tensions between the cryptocurrency industry and U.S. regulators have entered a new phase. The joint action by the two veteran legal experts not only highlights the industry’s concerns about current regulatory practices, but also demonstrates the growing attention paid to cryptocurrency issues in the political sphere.
At the same time, warnings from market analysts and the evolution of the political landscape also highlight the urgent need for regulatory policies to keep up with the times. As the election approaches, cryptocurrency has gradually evolved into a core issue that may influence voter preferences and political discussions.