Biden-Harris Regime Regulators Target Crypto Banks, Shut Down Solvent Institutions
The Biden-Harris administration is facing increasing criticism over its handling of banks tied to the cryptocurrency industry. Financial regulators, including the Federal Reserve, have been accused of intentionally forcing solvent institutions like Silvergate and Signature Bank to shut down. New restrictions imposed by the Fed have made it nearly impossible for these banks to continue serving crypto-related businesses.
Silvergate Bank, which managed to survive a significant bank run following the collapse of FTX, was one of the first to feel the pressure. Despite being solvent, Silvergate was told by the Fed to significantly reduce its crypto dealings, which formed the core of its business. The demands left the bank with no choice but to liquidate. Former Silvergate executive Elaine Hetrick confirmed this, stating that the bank was stable and capable of weathering the storm, but the Fed’s restrictions made it impossible to continue.
Critics argue that the administration’s actions are unconstitutional, accusing the federal government of unlawfully targeting a legal industry. “The Biden administration is essentially killing off crypto banks by cutting off their access to essential banking services,” said one industry analyst. Many see the Fed’s actions as a deliberate move to cripple the burgeoning crypto sector by depriving it of financial support.
Signature Bank, another major player, was also sold under pressure from regulators. However, the sale notably excluded any of its crypto-related assets, fueling further speculation that the administration is determined to drive crypto businesses out of the banking sector. This move, according to critics, further highlights the Biden administration’s hostility toward the digital asset industry.
Proponents of the crypto industry are calling for stronger oversight of the administration’s actions. They argue that the government’s crackdown on these banks is not only harmful to the financial sector but could have long-term consequences for innovation and entrepreneurship in the U.S. With banks like Silvergate and Signature forced to shut down, crypto companies are finding it increasingly difficult to operate within the traditional financial system.
Many believe that the government’s handling of these banks represents an overreach of federal power. By imposing strict guidelines on banks servicing crypto firms, critics argue the Biden administration is attempting to regulate the industry out of existence. If this continues, the U.S. could lose its position as a leader in financial innovation, forcing companies to seek opportunities in other countries with more crypto-friendly regulations.
As the debate continues, the long-term impact on both the banking and crypto industries remains uncertain. However, what is clear is that the administration’s approach is creating a hostile environment for banks willing to engage with crypto businesses. This could stifle growth and push innovation offshore, leaving many to wonder whether the federal government is taking the right approach.
Critics warn that if the Biden administration does not change course, the consequences for the U.S. economy could be severe. By making it harder for crypto firms to access banking, the government may be undermining a legal and rapidly growing industry.
