Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry – Regulation Bitcoin News

Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry


Caitlin Long, CEO of crypto financial institution Custodia, criticized the U.S. authorities for its dealing with of a large crypto fraud that occurred months earlier than the corporate’s collapse. She made her remarks in a weblog publish after disclosing proof to regulation enforcement. Long’s publish adopted Custodia’s unsuccessful utility to grow to be a member of the Federal Reserve System, which was denied by the Federal Reserve Board.

CEO of Custodia Criticizes U.S. Government for ‘Shooting a Messenger Who Warned of Crypto Debacle’

Executives of digital foreign money and blockchain firms are displeased with the U.S. authorities’s crackdowns and lack of regulatory readability. Brian Armstrong, CEO of Coinbase, has known as on Congress to cross clear laws on cryptocurrencies, and Jesse Powell, CEO of Kraken, has echoed that message. On Feb. 17, Caitlin Long, CEO of Custodia, printed a weblog publish explaining that she had given proof to authorities a few crypto fraud case months earlier than the corporate collapsed, leaving its thousands and thousands of clients with losses.

In her weblog publish titled “Shame on Washington, DC for Shooting a Messenger Who Warned of Crypto Debacle,” Long argues that the present enforcement actions are a misguided crackdown on the whole trade. “Calls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters,” Long wrote. It is well-known that senior members of the U.S. Securities and Exchange Commission (SEC), the White House, and the Commodity Futures Trading Commission (CFTC) met with Sam Bankman-Fried (SBF) and high-ranking FTX officers.

Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry
The U.S. Federal Reserve Board not too long ago rejected the try of Custodia Bank to grow to be a member of the Federal Reserve System.

Additionally, an estimated one in three members of Congress obtained a direct contribution from SBF and his inside circle. “In a 180-degree turn, [policymakers are] now throwing the baby out with the bathwater,” Long wrote in her weblog publish. The Custodia CEO additionally talked about that authorities officers likened her crypto financial institution’s operation to FTX’s misconduct and collapse, ensuing in an ambush on the crypto trade by officers.

“Custodia Bank recently found itself in the crosshairs of Beltway Politics at their worst,” Long harassed. “Custodia was simultaneously attacked 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, in which he attacked two companies run by female CEOs — Fidelity and Custodia — implicitly comparing us to a 29-year-old accused fraudster who is now wearing an ankle bracelet).”

The Custodia CEO added:

Custodia tried to grow to be federally regulated – the very outcome bipartisan policymakers declare to need. Yet Custodia has been denied and [is] now disparaged for daring to come back by means of the entrance door.

After Long printed her weblog publish in regards to the scenario, Jesse Powell, CEO of Kraken, responded to her Twitter thread on the topic. “I can’t tell you how infuriating it is to have pointed out massive red flags and obviously illegal activity to regulators only to have them ignore the issues for years,” Powell tweeted. “‘They’re offshore. It’s complicated. We’re looking at everybody.’ FOR YEARS. Then to be used as their example.”

The complaints from Long, Armstrong, and Powell come after the SEC’s enforcement motion in opposition to Terraform Labs and CEO Do Kwon, 9 months after the whole Terra ecosystem collapsed. The U.S. securities regulator was criticized for being late to the sport, and plenty of consider the SEC is solely throwing spaghetti on the wall to see what’s going to stick.

Tags in this story

Blog Post, Brian Armstrong, Broad Crackdowns, Caitlin Long, ceo, CFTC, Coinbase, collapse, Congress, Crackdown, crypto trade, Cryptocurrency, Custodia, do kwon, enforcement actions, Fraud, ftx, FTX collapse, Jesse Powell, Kraken, misconduct, offshore, overregulation, policymakers, purple flags, regulatory readability, Sam Bankman-Fried, sbf, SEC, securities regulator, spaghetti, terraform labs, Twitter, US authorities, White home

What is your opinion on the criticisms from Custodia’s CEO concerning the U.S. authorities’s dealing with of the current enforcement actions in the crypto trade and the purple flags she identified earlier than a crypto firm’s collapse? Share your ideas on this matter in the feedback part under.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a monetary tech journalist residing in Florida. Redman has been an lively member of the cryptocurrency group since 2011. He has a ardour for Bitcoin, open-source code, and decentralized functions. Since September 2015, Redman has written greater than 6,000 articles for Bitcoin.com News in regards to the disruptive protocols rising immediately.

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