Robert Kennedy, the Democratic presidential candidate in the United States, is among the staunch supporters of crypto. In recent days, he has railed against the growing anti-crypto sentiment within the American left. The environmental lawyer also indicated that the banking crisis in the United States is poorly managed by the Biden administration. He spoke out against the bailout approach used by financial agencies to deal with the crisis.
The big banks: collateral damage from the war on cryptocurrencies!
Robert Kennedy believes that US regulators caused several bank failures in March by waging a war on cryptos. Indeed, he endorsed the content of an article by Fed critic Ellen Brown on the subject. The article discusses how regulators’ war on crypto caused a banking crisis. She says the FDIC and SEC triggered the bankruptcy of Silicon Valley, Signature and Silvergate banks.
Kennedy finds it deplorable that regulators are waging a war on crypto by making big banks collateral damage. He thus joins several crypto industry leaders who believe that the banking crisis is aimed at pushing crypto away from banks. There is talk of a government conspiracy called “Operation Chokepoint 2.0”. They explained that regulators mostly want to scare off blockchain companies overseas by adopting arbitrary rules.
For example, Barney Frank, a former US congressman, thinks regulators might not have shut down Signature Bank. He said the bank’s closure was intended to send a “anti crypto messageto other banks. Separately, Caitlin Long, CEO of crypto-friendly bank Custodia, also reacted to the situation. She said the SEC was looking to punish crypto companies.
Most crypto-friendly politicians in the United States are Republicans. Also, they have lately drawn attention to the SEC’s approach of “regulate by application“. At the same time, Democrats are questioning the crypto sector. They doubt that the new industry actually has a legitimate use case. Meanwhile, a threat hangs around crypto miners in the United States. Indeed, US President Joe Biden proposed a budget in March that includes a 30% tax on electricity for Bitcoin miners.
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