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- Crypto policy expert Ron Hammond believes banking regulators have been launching a “full-court press” against US crypto firms.
- Hammond also calls out the dubious pace of new rules, guidances, legislation, and hearing in 2023.
- Additionally, he asks the community to expect more regulatory actions in the coming weeks.
Director of Government Relations at Blockchain Association Ron Hammond took to Twitter to express his displeasure at the latest regulatory events in the crypto space. “It may be Valentine’s Day tomorrow, but don’t expect much love for crypto in tomorrow’s SenateBanking hearing,” wrote Hammond in a critical thread about the contentious and highly debated actions of the US Congress and banking regulators.
1) This week in Congress and crypto: It may be Valentine's Day tomorrow, but don't expect much love for crypto in tomorrow's @SenateBanking hearing. It's not just Congress, the banking regulators have been launching a full-court press against US crypto firms. Let's dive in…— Ron Hammond (@RonwHammond) February 13, 2023
It’s not just the Congress, explains Hammond, banking regulators have been launching a full-court press against US crypto firms. He also addresses something the crypto community has been noticing of late — the dubious pace of new rules, guidances, legislation, and hearing in 2023, which Hammond terms “relentless.”
The most surprising of the developments, according to the policy expert, is the aggressiveness of the federal banking regulators who seem keen on making crypto companies single for 2023 in terms of their banking relationships. Expanding on these points, Hammond states:
Last week’s final rule published by the Fed is one making a lot of noise in DC. The February 7th letter reads as a breakup text rather than a policy statement. Not only does it ban state member banks from crypto activities, but also restricts stablecoin issuance and more.
The crypto leader also touches on the staking enforcement action against Kraken, and wonders what many other crypto firms might be discussing internally considering the debacle ended in a settlement. He adds that the need for legislation in the stablecoin space is critical now more than ever.
Hammond wraps up his itemized thread asking his readers to expect more regulatory action in the coming weeks.
Tomorrow’s Senate Banking hearing will be much more substantive than the December one with the celebrities and that is by design. Detractors likely will endorse the divorce of crypto from financial institutions while supporters of crypto will be quick to attack the Fed/SEC.
Other things that he asks the crypto community to monitor are Wednesday’s IRS confirmation hearing in the Senate Committee on Finance and SEC amendments to the Investment Advisers Act around the issues of custody.
Hammond’s fears seem to be warranted as the community, to a large extent, shares similar sentiments. Fellow crypto enthusiasts are fully supporting the litany of grievances, acknowledging the calculated takedown of crypto enterprises.
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