Winklevoss Twins Sound Alarm on Regulatory Pressure in Crypto Industry
Gemini co-founders Tyler and Cameron Winklevoss are raising concerns about ongoing regulatory pressure impacting the cryptocurrency sector in the United States. Recent statements by the twins shine a light on issues related to banking access for crypto firms and proposed regulations affecting prediction markets.
Operation Chokepoint 2.0
Tyler Winklevoss has issued a warning about “Operation Chokepoint 2.0,” describing it as a concerted effort by government entities to limit crypto companies’ access to banking services, emphasizing that it is still active.
- Federal Reserve action against Customers Bank is a recent example of this crackdown.
- The Federal Reserve discovered significant deficiencies in Customers Bank’s anti-money laundering compliance.
- Customers Bank now needs to give 30 days’ notice to the Federal Reserve for new crypto banking relationships.
Winklevoss criticizes this move, arguing that it places the Federal Reserve as a gatekeeper blocking crypto companies from obtaining new bank accounts. He believes that this centralized decision-making power goes against principles-based regulation, creating a bottleneck for the industry.
Harris’ Crypto “Reset” Labelled a Scam
The Winklevoss twins also voiced their disapproval of Vice President Kamala Harris’ proposed “crypto reset,” dismissing it as a deceptive tactic. Tyler Winklevoss warned of intensified regulatory measures if Harris wins the upcoming election in November.
CFTC’s Stance on Event Contracts
Tyler and Cameron Winklevoss have come out against a recent rule proposed by the Commodity Futures Trading Commission (CFTC) concerning event contracts, citing potential implications for prediction markets.
- The proposed rule aims to ban all event contracts within the U.S., a move contested by the Winklevoss twins.
- They defend decentralized prediction markets as essential sources of future event information grounded in financial responsibility.
Cameron Winklevoss highlighted the importance of these markets, emphasizing their reliability in forecasting future events. The twins believe that the proposed ban is excessive and likely to face legal challenges.
CFTC Proposed Rule Overview
The CFTC argues that the proposed rule seeks to safeguard public interests by defining which contracts fall under the Commodity Exchange Act. The proposal specifically targets event contracts related to “gaming,” which includes bets on political outcomes, award ceremonies, and sports events.
Hot Take: Is Crypto Regulation Going Too Far?
As regulatory scrutiny on the crypto industry intensifies, the Winklevoss twins’ warnings echo concerns about the potential impact of stringent measures on the sector. With ongoing battles over banking access and proposed rules, the future regulatory landscape for cryptocurrencies remains uncertain.
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