Skip to content Skip to sidebar Skip to footer

Biden Administration Accused of Exploiting Market Chaos to Dismantle Crypto Industry

Congressman Tom Emmer has recently accused the Biden administration on Twitter, of exploiting the prevailing market instability to hamper the growth of the crypto industry. To gain a better understanding of the potential ties between sudden banking closures and the crypto space, last week, Emmer issued an inquiry letter to the FDIC Chairman.

Barney Frank Calls Out Regulatory Bodies, While Emmer Seeks Answers

The Signature Bank Board Member, Barney Frank has recently argued that regulatory authorities have put forth an unambiguous stance against cryptocurrencies through the unexpected banking closures. This has left many involved in the cryptocurrency space concerned about the future of their investments.

While the exact motivations behind the recent approach of the Biden administration and other regulatory bodies remain unclear, the potential implications of their actions cannot be ignored. Congressman Emmer has made it clear that he wants to get to the bottom of the issue and understand the potential impacts of any potential anti-crypto policies. 

Crypto Sector Under Siege

Despite two of the most prominent banking failures since 2008’s financial crisis – Silicon Valley Bank and Signature Bank – the crypto sector has faced further economic upheaval, as the regulators have recently closed another three cryptocurrency-friendly banks.

Furthermore, US Congressman Tom Emmer has raised noteworthy concerns that the Biden Administration is utilizing market chaos to detrimentally impact cryptocurrency, and has sent a letter to FDIC Chairman, Martin J. Gruenberg, to gather more information. This has sparked an array of inquiries concerning the future of the crypto industry.

Yesterday, Rep. Emmer formally reached out to FDIC Chairman Gruenberg to point out his concerns regarding the regulators’ utilization of recent instability in the banking sector to limit crypto activity in the U.S. Moreover, Emmer asserted that the government’s expenditure and rate hikes might lead to further financial turbulence. Unfortunately, as the situation develops, the crypto realm appears to be battling a steep challenge, with some of its key banking partners, such as Silicon Valley Bank and Silvergate Bank, shutting their services.