Biden officials ‘openly hostile to crypto’
- Brooks compared the collapse of Celsius, Terra and Three Arrows Capital to the financial collapse
- This meltdown caused by excessive leverage in some parts of the industry during the crisis
- The financial crisis was caused by a very small increase in defaults
According to Brian Brooks, a former comptroller of the currency, the leadership in Washington is openly hostile to cryptocurrency.
The remarks were made at a conference in Washington by the current Bitfury CEO as well as the former heads of Binance.us and Coinbase.
The comments of Bitfury’s current CEO
Brian Brooks, the current CEO of a crypto company and former senior US bank regulator, criticized the leadership of federal regulatory agencies as openly hostile to crypto.
Brooks stated that this is actually a political issue.
A number of the things I’ve heard, even in the last 24 hours in DC, have convinced me that the current leadership is committed to curtailing, if not eliminating, this.
In the final days of the Trump administration, Brooks, who is now CEO of digital asset services company Bitfury, served as comptroller of the currency.
He made the remarks during an interview on stage at DC Fintech Week, a Washington conference hosted by Georgetown University’s Law Center.
He went on to draw parallels between the financial sector after the 2008-09 global financial crisis and Silicon Valley after the collapse of the dotcom bubble and the current state of the digital asset industry.
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Why can Biden be characterized as anti-crypto?
As early as September 2022, Joe Biden called for more regulation of cryptocurrencies, which he claimed had grown in popularity.
Indeed, in accordance with Biden’s instructions, the industry had to aggressively pursue illegal practices and monitor complaints to protect customers and combat deceptive and abusive practices.
Indeed, the President of the United States of America continues to champion responsible innovation and financial stability.
Finally, the last order on digital assets was issued by Joe Biden in March of this year. Risks were mitigated from all angles 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 protections, including data security and privacy, as well as national security and human rights.
Brooks said the demise of Celsius, Terra and Three Arrows Capital was like a financial meltdown caused by handovers in some parts of the financial sector during the crisis. He said these parts of the financial sector were a small proportion of the financial sector as a whole.
Brooks stated that it doesn’t actually take much to blow up a financial market. The truth is that a very small increase in defaults on the Fannie Mae book was the root cause of the entire financial crisis.
Brooks added, referring to the failed crypto projects, that these things represented maybe two percent of the crypto market and bitcoin fell 80%.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
