VanEck Advisor Urges Policymakers to Press Banks for Anti-Crypto Crusade
In a recent development in the ongoing war between the banking industry and crypto assets, Gabor Gurbacs, advisor to Bitcoin ETF issuer VanEck, has joined the fray. He called on policymakers to take action against what they perceive as discriminatory practices by U.S. banks. The catalyst for this call to arms was a statement by Caitlin Long, CEO and founder of Custodia Bank, which is waging a legal battle against the Federal Reserve.
VanEck Consultant Called on Policy Makers
In a post on X, Long suggested there was a concerted effort to “de-bank” fintech and crypto companies in the United States. Gurbacs, who confirmed Long’s claims, echoed his sentiments. “I can also confirm that US banks have been quietly de-platforming businesses that have anything to do with crypto or even services,” he said.
Gurbacs also drew parallels with the controversial Operation Chokepoint, describing the alleged actions as “Operation Chokepoint 2.0”. In a direct appeal to policymakers, the VanEck strategist called on the likes of Tom Emmer, Senators Cynthia Lummis and Warren Davidson to publicly investigate these actions. He underlined the importance of holding both government institutions and banks accountable for discriminatory practices.
Additionally, Gurbacs argued that “those behind the closure of discriminatory bank accounts must be held accountable.” VanEck counsel also referenced the FDIC’s 2019 Operation Chokepoint lawsuit settlement, highlighting potential legal ramifications. He argued that the banks’ alleged actions could violate that agreement.
Additionally, VanEck counsel emphasizes that individuals and departments complicit in these actions “will not get away with it.” Gurbacs concluded by echoing Long’s condemnation of the alleged actions. He reiterated that “forced closing of bank accounts is discriminatory, illegal, wrong, and likely violates the FDIC’s 2019 Operation Chokepoint lawsuit settlement.”
He also called on senators and congressmen to speak out against these practices. The VanEck strategist emphasizes that “senators and congressmen must speak up on behalf of the people.”
Also Read: Gabor Gurbacs Backs USDT to Outperform New Stablecoin ripple
Custodia Bank and Federal Reserve
Judge Scott Skavdahl, who presided over the Custodia Bank v. Federal Reserve case, initially harbored doubts about the Fed’s authority over master account applications. However, he later changed his stance and sided with the Federal Reserve. He argued that legal provisions do indeed give the Fed final decision-making authority.
Custodia Bank, headquartered in Wyoming, sued the Federal Reserve after delays and eventual denial of its master account application by the Federal Reserve Bank of Kansas City. Custodia argued that the decision was inappropriate and under the influence of the Fed board. They also stated that the decision exceeded the discretion of non-member depository institutions.
In his final decision, Judge Skavdahl stated that federal law does not obligate the Fed to grant master account access to all applicants. It highlights the risk that providing unrestricted access could potentially lead to a regulatory ‘race to the bottom’. Custodia Bank expressed its determination to continue its vision of secure technological banking despite legal setbacks and considered all options, including appeal, following the court decision.
Also Read: Ethereum L2s May Overtake Main Blockchain, VanEck Reports
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