Written by 6:00 pm Cryptocurrency

Biden officials ‘overtly hostile to crypto’

  • Brooks compared the collapse of Celsius, Terra, and Three Arrows Capital to the economic meltdown
  • This meltdown caused by excessive leverage in some parts of the industry during the crisis
  • The financial crisis was caused by a very slight uptick in defaults

According to Brian Brooks, a former Comptroller of the Currency, leadership in Washington is overtly hostile to cryptocurrency.

The remarks were made at a conference in Washington by the current Bitfury executive as well as the former executives of Binance.us and Coinbase.

The remarks of Bitfury’s current CEO 

Brian Brooks, the current CEO of a crypto company and former senior U.S. bank regulator, criticized the leadership of federal regulatory agencies as overtly hostile to crypto.

Brooks stated that this is, in fact, a political issue. 

A number of the things I’ve heard, even in the last 24 hours in D.C., have convinced me that the current leadership is committed to limiting, if not eliminating, this.

In the final days of the Trump administration, Brooks, who is now the CEO of the digital asset service company Bitfury, served as Comptroller of the Currency. 

During an on-stage interview at D.C. Fintech Week, a Washington conference hosted by Georgetown University’s Law Center, he made the remarks.

He went on to draw parallels between the financial sector following the global financial crisis of 2008-09 and Silicon Valley following the dotcom bubble’s collapse and the digital asset industry’s current state. 

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Why Biden can be characterized as anti-crypto? 

As early as September 2022, Joe Biden demanded more regulations for cryptocurrencies, which he claimed had grown in popularity.

Indeed, in accordance with Biden’s instructions, the industry needed to aggressively pursue illegal practices and monitor complaints in order to safeguard customers and combat deceptive and abusive practices.

In point of fact, the President of the United States of America continues to advocate for responsible innovation and financial stability.

Lastly, the most recent executive order on digital assets issued by Joe Biden was in March of this year. Risks were mitigated from every angle by the executive order, which included accountability for cryptocurrencies and digital assets: businesses, investors, and customers.

Biden was particularly concerned about the potential effects on privacy and security. 

Indeed, the rise of cryptocurrencies has had profound effects on consumer and business protection, including data security and privacy, as well as national security and human rights.

Brooks said that Celsius, Terra, and Three Arrows Capital’s demise was like the financial meltdown caused by overleveraging in some parts of the financial sector during the crisis. He said that these parts of the financial sector were a small percentage of the financial sector as a whole.

Brooks stated that it actually doesn’t take much to blow up a financial market. The truth is that a very slight increase in defaults within the Fannie Mae book was the root cause of the entire financial crisis.

Brooks added, referring to the failed crypto projects, that those things represented maybe two percent of the crypto market and bitcoin fell 80%.

Nancy J. Allen
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