• Ric Edelman, founder of the Digital Assets Council of Financial Professionals, argues that U.S. regulators are short-sightedly trying to cut crypto off from U.S. banks.
• In January, the Federal Reserve, FDIC and OCC issued a joint statement discouraging banks from accepting deposits from crypto companies.
• Former Congressman Barney Frank has criticized the regulators for their “overreach” and warned about the consequences for innovation in America if they continue on this path.

Short-Sightedness of Run-Amok Regulators

Ric Edelman, founder of the Digital Assets Council of Financial Professionals, talks about a key reason why crypto’s future looks bleaker: an apparent effort to cut it off from U.S. banks by U.S regulators who are being short-sighted in their actions. In January, the Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) issued a joint statement discouraging banks from accepting deposits from crypto companies – taking action without necessary public input or approval..

Regulators Taking Action

The Fed, FDIC and OCC have taken action against those banks that still do business with crypto companies when Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB) were shut down as an example to others not to do business with them either. When FDIC turned over Signature Bank’s $38.4 billion of deposits to Flagstar Bank; Signature’s $4 billion of deposits held in their digital assets businesses were excluded – making it clear that any involvement with digital assets was not welcome or allowed by US regulations at this time..

Effects on Innovation

Former Congressman Barney Frank has criticized these regulators for their “overreach” and warned about what could happen if they continued down this path – stifling innovation in America which would be detrimental in both economic and technological terms due to lack of progression within these areas moving forward if blocked off by restrictive regulations such as these now being implemented..

Unfair Treatment

Edelman questions why businesses involved with digital assets who are engaged in legal activities should not receive fair treatment like other industries? Why is there such an attempt to penalize them simply because they are associated with cryptocurrencies? He believes that regulating out competition may protect some existing financial players but it doesn’t encourage innovation nor does it benefit consumers or investors..

Conclusion

In conclusion, although there needs to be regulation within any industry involving money transactions; US regulators need to consider carefully how much control they implement over cryptocurrency otherwise they risk jeopardising American innovation and long-term damage on the US economy overall due to lack of progress within this field due to restrictive policies put into place now because of fear or misunderstanding around this topic area at present time