Harris campaign’s alleged crypto reset questioned amid Fed's bank action

The Federal Reserve’s enforcement action against the crypto-friendly Customers Bank has fueled speculations about the Harris campaign’s alleged crypto reset, with prominent figures in the industry voicing their concerns.

On Aug. 9, Tyler Winklevoss, co-founder of Gemini, took to X to highlight the Federal Reserve’s actions. “Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto ‘reset’ is a scam,” Winklevoss posted.

Crypto banking crackdown

The Fed’s 13-page enforcement action against Customers Bank mandates the bank to provide a 30-day advance notice before entering any new banking relationship with a cryptocurrency company.

Winklevoss emphasized the broader implications of this enforcement action, noting that Customers Bank is one of the few remaining crypto-friendly banks in the United States. He stated that the Federal Reserve is now controlling access to banking services for crypto companies, essentially deciding who can and cannot open a bank account, thereby limiting their ability to operate.

He criticized the centralization of decision-making power within the Fed, arguing that such decisions should be decentralized across the banking industry and made at each bank’s discretion.

Hoskinson joins Winklevoss

In response to Winklevoss’ statement, Charles Hoskinson, founder of Cardano, echoed the sentiment that the current administration has a hostile stance toward the crypto industry.

Hoskinson believes the Biden-Harris administration is actively working against the crypto industry, and this stance has not changed. He warns that voting for Kamala Harris would harm the American crypto industry, implying that she would continue this perceived “war on crypto.”

In a letter sent to Democratic National Committee Chair Jaime Harrison in July, a group of House lawmakers, spearheaded by Representative Nickel and congressional candidates from various districts, called on party leaders to adopt a progressive stance on digital assets and blockchain technology.

Between March and August 2023, the US banking sector faced a tumultuous period, marked by the downfall of several banks that catered to crypto businesses, including Silvergate, Signature, and Silicon Valley Bank. In contrast, Customers Bank maintained its stability and continued serving its crypto clients, albeit with a cap on CBIT deposits at 15% of its overall deposits.