Brian Armstrong, the chief executive of Coinbase, along with tech billionaire Elon Musk, have condemned prominent political figures, including Senator Elizabeth Warren and SEC Chairman Gary Gensler, for allegedly conducting a “mass financial exclusion” campaign targeting the technology and cryptocurrency industries during the Biden administration.
These statements come after revelations of secretive actions that led to the closure of the bank accounts of dozens of tech entrepreneurs without notice or opportunity to appeal.
Powerful Crypto Leaders Oppose Biden Administration
In a post on X (formerly known as Twitter), Armstrong called these financial removals “unethical and un-American.” He singled out Warren and Gensler, accusing them of trying to “illegally destroy” the cryptocurrency industry.
Brian Armstrong argues that such actions contributed to the Democrats’ recent election defeat. Coinbase director warns the party needs to separate from Warren if it wants to recover politically.
He also revealed that Coinbase is using Freedom of Information Act (FOIA) requests to fully uncover the scale of the problem, raising questions about possible violations of the law.
“We are still gathering documents through FOIA requests, hoping that the full story will reveal who was involved and whether they broke any laws. Warren and Gensler illegally tried to destroy our entire industry, and that is the main reason for the Democratic defeat in the election,” Armstrong said. declare.
Armstrong’s remarks highlighted a controversy shared by Elon Musk, who is known for promoting free speech and innovation. The SpaceX CEO mentioned one interview on the Joe Rogan show with Marc Andreessen, co-founder of Andreessen Horowitz.
“Did you know that 30 tech founders were secretly financially dumped?” Musk comment.
In the interview, Andreessen alleged that 30 tech founders were “secretly financially eliminated,” describing it as a use of the “silent power of the government.” This highlights the lack of transparency and warns of wider implications for freedom and creativity.
Custodia Bank’s Custodia Participant criticized
Custodia Bank founder and CEO Custodia Bank also chimed in, sharing her personal experience with being left out of finance multiple times. Custodia Bank, a pro-cryptocurrency bank, has faced regulatory hurdles, leading to layoffs as the Federal Reserve delayed issuing key accounts to the institution. Long’s ongoing lawsuit against the Fed seeks to address these challenges, with oral arguments scheduled to be presented on January 21, 2025.
“It is true that there have been financial exits many times, in the case of my company (Custodia Bank). Stay tuned for our pending lawsuit against the Fed. Oral arguments are scheduled for January 21 (the day after inauguration day),” Long comment.
These allegations come amid broader concerns about regulatory overreach in the cryptocurrency space. Warren and Gensler have been prominent critics of the industry, and the SEC, under Gensler’s leadership, has taken multiple enforcement actions against cryptocurrency companies. Critics say these measures stifle innovation and disproportionately target emerging technologies.
The difficulties of Custodia Bank, and others like Consensys, reflect the challenges facing crypto-friendly financial institutions. The fallout from these allegations could reshape the relationship between the tech industry and US policymakers.
Brian Armstrong’s argument that these actions contributed to Democrats’ electoral defeat highlights the political danger of alienating the tech and cryptocurrency community. Furthermore, Long’s case could set a precedent for how courts handle complaints of regulatory overreach.