- A Web3 leader said there is a draconian operation to de-bank crypto.
- Some people think it is an overblown FUD.
- Coinbase CEO stands against the SEC’s supposed intention to ban crypto staking.
The crypto community speculates that the US apex bank and the Office of the Comptroller of Currency (OCC) are trying to clamp down on the crypto industry. A Web3 leader with the username Ap_Abacus on Twitter described it as a draconian operation to de-bank crypto.
Ap_Abacus claimed that the Federal Reserve bank and OCC were going after an investment banking firm with crypto ties, Morgan Stanley, and Paxo Global, a stablecoin issuer.
Additionally, the Web3 leader quoted a source stating that venture capitalists were becoming increasingly concerned that their crypto portfolio companies were being de-banked en masse.
Reacting to Ap_Abacus’s tweet, a crypto enthusiast expressed that the de-banking would be geared towards non-US licensed platforms and not KYC’ed firms like Fidelity Digital Assets and Coinbase. It ‘seems like overblown Fear, Uncertainty and Doubt (FUD),’ they added.
Similarly, Brian Armstrong, the CEO of the US-based crypto exchange, Coinbase, tweeted early today about a rumor of the Securities and Exchange Commission (SEC) getting rid of crypto staking for retail customers. Armstrong believed such action would be a terrible path for the United States.
The Coinbase CEO contended that staking was a crucial innovation in crypto, allowing users to participate directly in running open crypto networks. He continued:
Staking brings many positive improvements to the space, including scalability and increased security. We must ensure that new technologies are encouraged to grow in the US and not stifled by lack of clear rules.
Last year, the Coinbase CEO vowed to ensure that crypto survives in the United States amidst the regulatory bottlenecks.