Tyler Winklevoss, co-founder of the crypto exchange Gemini, did not hold back in his recent criticism of Vice President Kamala Harris’s “reset” of the crypto stance. In a bold post on X, Winklevoss labeled Harris’s actions as a “scam.” This scathing critique comes on the heels of Winklevoss’s disappointment in Harris for skipping a roundtable discussion with crypto leaders on August 8.
One of the main points of contention in Winklevoss’s post is the U.S. Federal Reserve’s enforcement action against Customers Bank, a crypto-friendly bank. The Federal Reserve issued a 13-page enforcement action against Customers Bank recently, demanding that the bank provide thirty days of written notice before establishing new banking relationships with crypto firms. Winklevoss pointed out that this move essentially creates a choke point, with the Federal Reserve acting as a gatekeeper between crypto companies and their ability to secure new bank accounts.
Winklevoss’s critique extends beyond the specific enforcement action against Customers Bank. He argues that such regulatory measures go against the principles of decentralized decision-making in the banking industry. According to Winklevoss, banks should have the autonomy to choose their clients without undue interference from regulatory bodies. By centralizing this decision-making process, Winklevoss believes that the Federal Reserve is overstepping its bounds and creating unnecessary barriers for crypto companies.
In his analysis of the allegations leveled against Customers Bank, Winklevoss dismisses them as “non-allegation allegations” that lack concrete evidence. He criticizes the Federal Reserve for making vague and unsubstantiated claims without providing clear proof to back them up. Winklevoss argues that the public is left to simply trust the Federal Reserve’s word, a situation he deems as convenient for the regulatory body.
Winklevoss further speculates on the motives behind the Federal Reserve’s enforcement action, suggesting that there may be ulterior motives at play. He insinuates that the Federal Reserve’s true aim is to gain control over Customers Bank’s decision-making process, dictating which companies and industries the bank can serve. This, according to Winklevoss, represents a dangerous power grab by the Federal Reserve, aimed at unlawfully controlling the banking industry.
In a final warning, Winklevoss cautions that the Federal Reserve’s current actions may be just the beginning. He suggests that if Harris were to win the upcoming election in November, the Federal Reserve’s regulatory measures could intensify significantly. Winklevoss paints a grim picture of what he sees as potential overreach by both the Federal Reserve and elected officials, signaling a turbulent future for the crypto industry under such circumstances.
Tyler Winklevoss’s outspoken criticism of the Federal Reserve’s recent crackdown on Customers Bank and the broader crypto industry highlights his concerns about centralized regulation, lack of transparency, and potential abuses of power. As the crypto landscape continues to evolve, Winklevoss’s warnings serve as a sobering reminder of the challenges and risks facing this burgeoning sector.
Leave a Reply