VanEck advisor Gabor Gurbacs doubled down on Custodia Bank CEO Caitlin Long’s claims of banks discriminating against crypto businesses. By Coingape Staff 44 mins ago Updated 29 mins ago
Story Highlights
- Custodia Bank CEO Caitlin Long sounded alarm over banks discriminating against crypto entities.
- VanEck advisor Gabor Gurbacs echoed the sentiment and confirmed the actual occurence of such incidents.
- Gurbacs called upon policymakers like Tom Emmer and Senator Cynthia Lummis to tackle the situation.
In a recent development in the ongoing battle between the banking sector and crypto entities, Gabor Gurbacs, an advisor at Bitcoin ETF issuer VanEck, joined the fray. He called for action from policymakers against what they perceive as discriminatory practices by US banks. The catalyst for this call to arms was a statement by Caitlin Long, CEO and founder of Custodia Bank, which is engulfed in a legal fight against the Federal Reserve.
VanEck Advisor Calls Upon Policymakers
In a post on X, Long asserted that there is a concerted effort to “debank” fintech and crypto companies in the United States. Confirming Long’s claims, Gurbacs echoed her sentiments. He stated, “I can confirm as well that US banks are quietly de-platforming businesses that have anything to do with crypto, even services.”
Furthermore, drawing parallels to the controversial Operation Chokepoint, Gurbacs labeled the alleged actions as “Operation Chokepoint 2.0.” In a direct appeal to policymakers, the VanEck strategist urged figures such as Tom Emmer, Senator Cynthia Lummis, and Warren Davidson to investigate these actions publicly. He underscored the importance of holding both government agencies and banks accountable for discriminatory practices.
Moreover, Gurbacs asserted that “those behind discriminative bank account closures should be held responsible.” In addition, highlighting the potential legal consequences, the VanEck advisor referenced the FDIC’s 2019 Operation Chokepoint lawsuit settlement. He suggested that the purported actions by banks may violate this agreement.
In addition, the VanEck advisor emphasized that individuals and departments complicit in these actions “won’t get away with it.” Gurbacs concluded by echoing Long’s condemnation of the alleged actions. He reiterated that “force-closing bank accounts is discriminatory, illegal, wrong, and likely violates the FDIC’s 2019 Operation Chokepoint lawsuit settlement.”
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Furthermore, he called on senators and congressmen to speak up against these practices. The VanEck strategist emphasized that “senators and congressmen should speak up for the people.”
Custodia Bank Vs. Federal Reserve
Justice Scott Skavdahl, presiding over the case between Custodia Bank and the Federal Reserve, initially harbored doubts about the Fed’s authority over master account applications. However, he later shifted his stance, siding with the Federal Reserve. He suggested that legislative provisions indeed grant the Fed final determination power.
Custodia Bank, based in Wyoming, sued the Federal Reserve after facing delays and eventual rejection of its master account application by the Federal Reserve Bank of Kansas City. Custodia argued that the decision was improper and influenced by the Fed’s board. In addition, they stated that the decision exceeded its discretion for nonmember depository institutions.
In his final ruling, Judge Skavdahl stated that federal laws don’t mandate the Fed to grant master account access to all applicants. He emphasized the risk of providing unlimited access, potentially leading to a regulatory ‘race to the bottom.’ Custodia Bank expressed determination to pursue its secure technological banking vision despite the legal setback, considering all options, including an appeal, to navigate the aftermath of the court’s decision.
