Cameron Winklevoss, co-founder and CEO of New York-based cryptocurrency exchange Gemini, accused United States regulators of applying double standards when handling the First Republic Bank crisis.
Cameron Winklevoss Claims Regulators Are Applying Double Standards on Banking Crisis
Gemini CEO says things would be handled differently if First Republic were a "crypto" bank.
According to Winkelvoss, if First Republic were a "crypto bank" it would have been "killed weeks ago".
It's important to note that First Republic initially began experiencing "structural difficulties" with its balance sheet when Silicon Valley Investment Bank and Silvergate Bank were shut down by federal regulators or ceased operations.
Winklevoss's allegations are in line with a series of new letters penned by three Republican members of the United States House of Representatives Financial Services Committee to learn more about possible coordinated efforts against crypto companies operating on US soil.
Advisors to the First Republic will now seek to persuade larger US banking institutions to provide more financial aid, which has sent more than $30 billion to the embattled firm because of the government's refusal to trust the bank, CNBC reported April 26.
Both Silvergate and Silicon Valley Bank were turned over to trustees by the government on March 8 and March 10, respectively.
The collapse of First Republic Bank is believed to have provided a tailwind for investment in Bitcoin and other cryptocurrencies as investors' distrust of central banking institutions grows.
*Not investment advice.
