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

Custodia CEO Slams US Authorities Over Broad Crackdown, Lack of Regulatory Readability in Crypto Trade

February 18, 2023 Off By lordanime37
Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry

Caitlin Lengthy, CEO of crypto financial institution Custodia, criticized the U.S. authorities for its dealing with of an enormous 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. Lengthy’s publish adopted Custodia’s unsuccessful software to develop into a member of the Federal Reserve System, which was denied by the Federal Reserve Board.

CEO of Custodia Criticizes U.S. Authorities for ‘Taking pictures 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 called on Congress to move 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 thousands and thousands of consumers with losses.

In her weblog publish titled “Disgrace on Washington, DC for Taking pictures a Messenger Who Warned of Crypto Debacle,” Lengthy argues that the present enforcement actions are a misguided crackdown on the whole business. “Requires a crackdown at the moment are coming from lots of the similar policymakers who have been charmed by the fraudsters,” Lengthy wrote. It’s well-known that senior members of the U.S. Securities and Alternate Fee (SEC), the White House, and the Commodity Futures Trading Commission (CFTC) met with Sam Bankman-Fried (SBF) and high-ranking FTX officers.

Moreover, an estimated one in three members of Congress received a direct contribution from SBF and his interior circle. “In a 180-degree flip, [policymakers are] now throwing the child out with the bathwater,” Lengthy wrote in her weblog publish. The Custodia CEO additionally talked about that authorities officers likened her crypto bank’s operation to FTX’s misconduct and collapse, leading to an ambush on the crypto business by officers.

“Custodia Financial institution lately discovered itself within the crosshairs of Beltway Politics at their worst,” Lengthy harassed. “Custodia was concurrently attacked by the White Home, the Federal Reserve Board of Governors, the Kansas Metropolis Fed, and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent financial institution with FTX in a Senate floor speech, wherein he attacked two corporations run by feminine CEOs — Constancy and Custodia — implicitly evaluating us to a 29-year-old accused fraudster who’s now sporting an ankle bracelet).”

The Custodia CEO added:

Custodia tried to develop into federally regulated – the very outcome bipartisan policymakers declare to need. But Custodia has been denied and [is] now disparaged for daring to return by way of the entrance door.

After Lengthy revealed her weblog publish concerning the state of affairs, Jesse Powell, CEO of Kraken, responded to her Twitter thread on the topic. “I can’t let you know how infuriating it’s to have identified huge crimson flags and clearly criminal activity to regulators solely to have them ignore the problems for years,” Powell tweeted. “‘They’re offshore. It’s sophisticated. We’re taking a look at everyone.’ FOR YEARS. Then for use as their instance.”

The complaints from Lengthy, Armstrong, and Powell come after the SEC’s enforcement motion towards 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 game, and plenty of consider the SEC is solely throwing spaghetti on the wall to see what’s going to stick.

What’s your opinion on the criticisms from Custodia’s CEO concerning the U.S. authorities’s dealing with of the current enforcement actions within the crypto business and the crimson flags she identified earlier than a crypto firm’s collapse? Share your ideas on this subject within the feedback part beneath.