CEO of Custodia criticizes US regulators’ approach to crypto
Custodia CEO Caitlin Long has accused regulators and policymakers in Washington of having a misguided attack on the crypto industry.
Long, who gave evidence to police about a major crypto scam before the company eventually collapsed, has said financial regulators’ approach to crypto stifled good players and failed to protect investors.
Impeding crypto growth with regulatory hurdles
The head of Custodia, Caitlin Long, detailed the company’s struggle to get approval for a main account from the US Federal Reserve and the Kansas City Fed. This will enable the firm to become part of the Federal Reserve System. Long has sued the Federal Reserve over the denial of the application.
“Custodia tried to be federally regulated — the result bipartisan policymakers claim to have. Yet Custodia has been denied and now scorned for daring to come through the front door,” Long wrote in a blog post titled “Shame on Washington, DC for shooting a messenger who warned against the cryptodebacle.”
In addition, she criticized politicians’ call to crack down on the crypto industry. In her view, this will only push risks into the shadows and leave regulators playing the game as risks keep popping up in unexpected places.
Industry leaders rally behind Custodia CEO Caitlin Long’s criticism
Various executives of top crypto firms share Long’s views. They believe that regulators have chosen enforcement over clarity, which has benefited no one as bad actors continue to operate.
Coinbase CEO Brian Armstrong and Kraken CEO Jesse Powell are among the prominent critics of US regulators. Armstrong has criticized the US Securities and Exchange Commission’s lack of dialogue with the crypto exchange in good faith. Meanwhile, Powell noted that it was “furious to have pointed out massive red flags and illegal activity to regulators only to have them ignore the problems for years.”
As the crypto industry grows, regulators must balance protecting investors and allowing innovation to flourish. However, critics argue that the current approach will only stifle the industry’s growth and force it into a gray zone, where risk and bad actors will be harder to control.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
