Custodia Bank opposed destruction crypto industry in U. S.
2023.02.18 08:01
Custodia Bank opposed destruction crypto industry in U. S.
By Tiffany Smith
Budrigannews.com – Caitlin Long, the CEO of Custodia Bank, has criticized lawmakers and regulators in Washington, D.C., for their “misguided crackdown” on the cryptocurrency industry and for ignoring her warnings about significant “fraud” allegedly committed by now-bankrupt entities.
Long attacked the government in a blog post published on February 17 and titled “Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle” for its approach to crypto regulation, which failed to protect investors and alienated good actors in the space:
“Washington’s misguided crackdown will only push risks into the shadows, leaving regulators to play whack-a-mole as risks continue to appear in unexpected locations.”
She has long emphasized that she has “been calling out the worst of crypto while trying to build a lawful, compliant alternative that relegates scams to the trash heap” with her digital asset custody firm. However, the majority of current policymakers appear determined to eliminate high-integrity innovators.
The CEO of Custodia Bank recounted the numerous unpleasant encounters her company has had recently. She made the claim that her efforts to collaborate with government agencies were ultimately met with resistance.
She added, “Custodia was attacked simultaneously by the White House, the Federal Reserve Board of Governors, the Kansas City Fed, and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent bank with FTX in a Senate floor speech)”
“Custodia tried to become regulated by the federal government, which is exactly what bipartisan policymakers say they want. Custodia, on the other hand, has been denied entry and is now disparaged for daring to enter.”
Her thoughts are similar to those of people like Coinbase CEO Brian Armstrong, who has said on multiple occasions that agencies like the Securities and Exchange Commission (SEC) haven’t been nice to his company’s efforts to keep a conversation going in good faith.
Armstrong also criticized the lack of clarity in U.S. regulations and what appears to be a “regulation by enforcement” approach earlier this month in response to the SEC’s decision to shut down Kraken’s staking services on Feb. 9.
“The regulators and lawmakers in Washington today are undoubtedly embarrassed by their failure to stop crypto criminals. Long wrote in the blog post, “DC is demanding scalps,” and added that:
Today, many of the same policymakers who were charmed by the fraudsters are calling for a crackdown. They are now, in a 180-degree turn, throwing the baby out with the bathwater.
Long also said on Twitter that she and a lot of others had tried, but failed, to warn Washington and “help law enforcement stop” major fraud well before several crypto firms collapsed in 2022.
Long stated that this was the first time she had disclosed publicly that she had “handed over evidence to law enforcement of probable crimes” committed by an unidentified crypto company “months before that company imploded and stuck its millions of customers with losses.”
1/ IT’S TIME FOR ME TO REVEAL A FEW THINGS. I’ve just published a post “Shame On Washington, DC For Shooting A Messenger Who Warned Of #Crypto Debacle.” Link to post is here: pic.twitter.com/rbo21DzOv3
Jesse Powell, co-founder and CEO of Kraken, responded to Long’s Twitter post by essentially confirming her claims by noting that: I cannot express how enraged I am that regulators have ignored massive red flags and clearly illegal activity for years after I have pointed them out.
I can’t express how enraged I am that regulators have ignored massive red flags and clearly illegal activity for years after I have pointed them out. Offshore, they are. It’s difficult. Everyone is being examined by us.” OVER YEARS then to serve as an example for them. https://t.co/YHdNazM2UE
