David Sacks, the White House crypto czar, celebrates significant changes in US banking supervision, benefiting crypto companies previously hit by Operation Chokepoint 2.0.
Significance of Changes in Banking Supervision
David Sacks announced that the Federal Deposit Insurance Corporation (FDIC) has joined the US Office of the Comptroller of the Currency (OCC) in removing 'reputational risk' as a factor in bank supervision. This change effectively rolls back the Operation Chokepoint 2.0 policies that had led to the unjust debanking of crypto companies. The new criteria will make banking assessments more objective and fair, preventing political influence from harming the crypto sector.
Role of Senator Tim Scott and the FIRM Act
Sacks also praised Senator Tim Scott's role in pushing these changes, particularly through the Financial Institution Reform and Modernization (FIRM) Act. This move is expected to create a better environment for crypto businesses and potentially lead to higher prices for digital assets.
Challenges in Crypto Regulation by Eleanor Terrett
Fox Business' Eleanor Terrett explained why 'regulation by enforcement' doesn't work. She noted that Ripple has spent between $150 million and $200 million in legal fees, only to find itself in the same position as when the SEC first filed the lawsuit in 2020.
The changes in US banking supervision exemplify an improvement in the environment for crypto companies, promoting more objective and fair conditions for the industry’s growth.
