Crypto CEO Accuses Regulators of Double Standard Over Banking Crisis
• Cameron Winklevoss, CEO of crypto exchange Gemini, accuses regulators of enacting double standards in their handling of the First Republic Bank crisis.
• Three Republican members of the U.S. House Financial Services Committee have penned letters to seek information on possible coordinated efforts against crypto firms operating in the U.S.
• Advisers at First Republic are reportedly seeking larger banking institutions to provide more aid due to the government refusing to take the bank into receivership.
Cameron Winklevoss Blames Regulatory Double Standards
The CEO of Gemini, Cameron Winklevoss, has accused United States regulators of enacting double standards in their handling of the First Republic Bank crisis. According to Winkelvoss, if First Republic had been a “crypto bank” it would have been “assassinated weeks ago”. This follows letters penned by three Republican members of the United States House of Representatives Financial Services Committee attempting to seek further information on possible coordinated efforts taken against crypto companies operating on U.S soil.
First Republic Experiences Structural Challenges
First Republic initially began experiencing “structural challenges” with its balance sheet at the time that Silicon Valley Investment Bank and Silvergate Bank were being closed down by federal regulators or winding down operations. It is down another 35% and falling fast according to Winklevoss which he claims shows just how blatant the double standard is between traditional banks and those within cryptocurrency markets.
Private Bailout Being Pushed by Yellen
According to a report from CNBC on April 26th, advisers at First Republic will now seek to coax larger U.S banking institutions — which have already sent $30 billion — into providing more financial aid due to the government refusing to take them into receivership as they did with Silvergate and Silicon Valley Bank.. Charles Gasparino reported that private bailout is being pushed by Treasury Secretary Janet Yellen who does not want depositors bailed out with government funds like before but instead wants a private solution for the firm’s liquidity problems so that it can remain in operation without going into receivership otherwise known as a “closed-bank” scenario..
Criticism Toward Regulators
Criticisms toward regulators over their handling of this situation could be seen as part of a growing trend among those within cryptocurrency markets feeling targeted unfairly compared with traditional banks across financial crises such as this one..
Ultimately it remains unclear whether or not US regulations surrounding cryptocurrency firms will continue facing accusations such as these from Winklevoss or if there is an imminent change coming towards regulatory policies surrounding them especially during crises such as this one impacting traditional banks like First Republic .