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There's "Clear Directive" to Crush Banking Access for Crypto: Scott Melker

Thu, 03/30/2023 - 18:39
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Alex Dovbnya
Crypto analyst Scott Melker warns of a "clear directive" to crush banking access for the crypto industry, as regulators work to cut off access for crypto companies
There's "Clear Directive" to Crush Banking Access for Crypto: Scott Melker
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In a recent interview with Yahoo Finance, crypto analyst Scott Melker stated that there is a "clear directive" to crush banking access for the crypto industry. 

He believes that regulators are working hard to cut off access for crypto companies.

Melker believes that although cryptocurrencies like Bitcoin and Ethereum are "too big to fail," regulators can still try to restrict on-ramps and off-ramps for American companies and retail investors. This could substantially limit their growth.

The crypto analyst also highlighted an ongoing turf battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies are now vying for control over the regulation of crypto assets.

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The confusion surrounding the classification of these assets, as Melker noted, could have significant implications for the industry's future.

The recent CFTC lawsuit against Binance serves as a prime example of regulatory pressure on the industry.

In stark contrast to the SEC, the agency designated Bitcoin, Ethereum, Litecoin, and a few stablecoins as commodities in the lawsuit, which accused Binance and its CEO, Changpeng Zhao, of violating trading and derivatives rules. Melker argues that the inclusion of these specific assets was no coincidence.

As a result of the lawsuit, the price of Bitcoin dropped 4.4%, but it has since recovered. 

With major players like Binance coming under fire, the consequences for both retail and institutional investors could be significant as the crypto market continues to mature.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at