CoinDesk Report:
Former Deputy Attorney General Donald B. Verrilli criticizes regulatory bodies targeting cryptocurrencies, disrupting banking operations. Both parties support cryptocurrency regulation ahead of the 2024 U.S. presidential election.
As the 2024 U.S. presidential election approaches, significant developments in cryptocurrency regulation have emerged.
Donald B. Verrilli, former Deputy Attorney General during the Obama administration, has joined the discussion.
Verrilli’s Positive Outlook on Cryptocurrency
Fox Business Channel reporter Eleanor Terrett highlighted Verrilli’s stance in a July 5 X (formerly Twitter) post, revealing his criticism of regulatory agencies’ deliberate disruption of cryptocurrencies.
He stated, “Despite the urgent need for banking services in the digital asset industry, federal regulatory agencies have launched a concerted effort to prohibit banking operations within the sector.”
In further posts, Terrett emphasized Donald Verrilli’s views on ongoing legal battles involving custodian banks and the Federal Reserve.
In context, the controversy surrounds the Federal Reserve’s refusal to grant custodian banks primary accounts.
Political Shifts
Despite historical differences in various Supreme Court cases, Verrilli and former Deputy Attorney General under President Bush, Paul Clement, unite in support of custodian banks’ legal challenge against the Federal Reserve.
They criticized the Office of the Comptroller of the Currency’s informal guidance effectively limiting banks’ collaboration with cryptocurrency firms.
This alliance indirectly advocates for the cryptocurrency industry, marking significant positions in their legal careers across party lines.
Terrett reiterated this and added, “It’s another sign of the changing political landscape for cryptocurrencies — gaining more bipartisan support leading up to the November elections.”
Gensler and Biden’s Anti-Crypto Moves
In recent months, the SEC’s continued scrutiny of prominent firms like Ripple (XRP), Coinbase, and ConsenSys has drawn significant criticism.
Notably, the anti-cryptocurrency sentiment is seen not only from President Joe Biden but also extends to SEC Chairman Gary Gensler.
Gensler’s recent remarks emphasized this sentiment, stating, “Cryptocurrencies represent a small portion of our overall market. However, they are a significant part of the market’s fraud, scams, and problems.”
However, not everyone sees cryptocurrencies as a partisan issue in the upcoming elections. Galaxy Digital founder and CEO Mike Novogratz stated,
“Cryptocurrency should be bipartisan, and it must be bipartisan.”
Taking a neutral stance, he concluded, “We will get positive cryptocurrency legislation regardless of who wins the next election — I know that.”