US Accused of Weaponizing Market Chaos Against Crypto

Allegations Against the US Government

US Congressman Tom Emmer has accused the Biden administration of weaponizing market chaos to undermine the crypto industry. This comes in response to the closure of Silvergate Bank, a pro-crypto financial institution, which many experts believe is part of a larger strategy against cryptocurrency.

Government's Competitive Moves

Emmer pointed to the Federal Reserve's plan to launch FedNow, an instant payment system, as evidence of the government's intention to compete with private crypto businesses. This move, he argues, reflects an effort to monopolize the financial sector and stifle crypto innovation.

Concerns from Industry Experts

Industry experts have voiced concerns about the US government's approach. Riot Platforms' Pierre Rochard criticized the Federal Reserve for using regulatory measures to engage in monopolistic behavior. Similarly, Ryan Selkis from Messari highlighted that Signature Bank was solvent before its sudden closure, which he attributes to regulatory overreach by the New York State Department of Financial Services.

Potential Consequences for the US

Blockchain lawyer John Deaton warned that the US’s attempt to suppress crypto might cause the country to lag in the Web3 revolution. He emphasized that cryptocurrency is here to stay, and the US risks missing out on leading the global crypto landscape. As USD dominance weakens, Deaton argued that the US should focus on securing a leadership role in the crypto sphere.

These developments underscore the ongoing tension between regulatory bodies and the burgeoning crypto industry, raising questions about the future of digital currencies in the US and the country's position in the global market.