After the pro-cryptocurrency Silvergate Bank was shut down, several industry insiders have speculated that the U.S. government is actively targeting the cryptocurrency sector.
U.S. Representative Tom Emmer claimed on March. 16 that the government headed by president Biden looks to be “weaponizing market instability to crush crypto.” His investigation led him to write to the head of the federal deposit insurance corporation (FDIC) for clarification.
According to two individuals cited by Emmer in an interview with Fox Business News, preventing Silvergate Bank from aiding crypto transactions was reportedly required of any entity purchasing Silvergate Bank.
The government wants in says Emmer
Emmer stated the government is eager to compete with private firms. The fact that the Federal Reserve (Fed) has just decided to create a new immediate payment system, FedNow, provided more support for Congressman Emmer’s views.
“The FED is exploiting regulatory authorities to engage in anti-competitive monopolist activity,”
Pierre Rochard, vice president of research at Riot Platforms.
Signature remained solvent despite the unprecedented coordinated $12 billion bank run, according to Ryan Selkis, head of the analytics business Messari, who declared on March 13 that NYDFS (New York state department of financial services) went rogue in closing them down.
The NYDFS, however, has previously asserted that cryptocurrency had zero bearing on the collapse of Signature Bank.
The U.S. risks falling behind
Notably, blockchain attorney John Deaton has expressed concerns that the United States may be left out of the web3 revolution if the government continues to try to stifle cryptocurrency.
The United States runs the danger of losing its influence on the global financial system, according to a former CIA officer and cryptocurrency specialist.
The crypto lawyer said that crypto is here to stay, and the United States might lose its lead in the crypto revolution if it doesn’t get on board soon.