Former US Attorney General: Regulators 'Systematically Shut Off' Crypto Industry's Bank Access

Former US Attorney General: Regulators 'Systematically Shut Off' Crypto Industry's Bank Access

Federal regulators are intentionally working to de-bank the cryptocurrency industry, according to the Obama administration's former solicitor general. Donald Verrilli made the claim in an amicus brief filed in support of crypto-focused bank Custodia's lawsuit against the Federal Reserve. "Despite the cryptocurrency industry's significant need for banking services, federal regulators have engaged in a systematic and concerted campaign to de-bank the industry," Verrilli wrote. The move by regulators has made it difficult for crypto companies to operate and has stifled the growth of the industry, Verrilli argued. "This has had a chilling effect on the cryptocurrency industry, making it difficult for companies to operate and stifling innovation," he wrote. Verrilli's brief is the latest in a growing chorus of criticism of regulators' approach to the cryptocurrency industry. Earlier this year, the Blockchain Association, a trade group representing the crypto industry, filed a lawsuit against the Securities and Exchange Commission (SEC) over its regulation of digital assets. The SEC has been criticized for its heavy-handed approach to regulating the crypto industry, which some say has stifled innovation and made it difficult for crypto companies to operate in the United States. ```