Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry – Regulation Bitcoin News
Caitlin Lengthy, 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 put up after disclosing proof to regulation enforcement. Lengthy’s put up adopted Custodia’s unsuccessful software to turn out 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 forex and blockchain corporations are displeased with the U.S. authorities’s crackdowns and lack of regulatory readability. Brian Armstrong, CEO of Coinbase, has referred to as on Congress to go clear laws on cryptocurrencies, and Jesse Powell, CEO of Kraken, has echoed that message. On Feb. 17, Caitlin Long, CEO of Custodia, revealed a blog post explaining that she had given proof to authorities a couple of crypto fraud case months earlier than the corporate collapsed, leaving its tens of millions of shoppers with losses.
In her weblog put up titled “Shame on Washington, DC for Shooting a Messenger Who Warned of Crypto Debacle,” Lengthy argues that the present enforcement actions are a misguided crackdown on your complete trade. “Calls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters,” Lengthy wrote. It’s well-known that senior members of the U.S. Securities and Change Fee (SEC), the White Home, and the Commodity Futures Buying and selling Fee (CFTC) met with Sam Bankman-Fried (SBF) and high-ranking FTX officers.
The U.S. Federal Reserve Board lately rejected the try of Custodia Financial institution to turn out to be a member of the Federal Reserve System.
Moreover, 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,” Lengthy wrote in her weblog put up. The Custodia CEO additionally talked about that authorities officers likened her crypto financial institution’s operation to FTX’s misconduct and collapse, leading to an ambush on the crypto trade by officers.
“Custodia Bank recently found itself in the crosshairs of Beltway Politics at their worst,” Lengthy confused. “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 turn out to be federally regulated – the very outcome bipartisan policymakers declare to need. But Custodia has been denied and [is] now disparaged for daring to return by means of the entrance door.
After Lengthy revealed her weblog put up 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 Lengthy, Armstrong, and Powell come after the SEC’s enforcement motion in opposition to Terraform Labs and CEO Do Kwon, 9 months after your complete Terra ecosystem collapsed. The U.S. securities regulator was criticized for being late to the game, and lots of imagine the SEC is just throwing spaghetti on the wall to see what’s going to stick.
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What’s your opinion on the criticisms from Custodia’s CEO relating to the U.S. authorities’s dealing with of the latest enforcement actions within the crypto trade and the crimson flags she identified earlier than a crypto firm’s collapse? Share your ideas on this matter within the feedback part under.
Jamie Redman
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