"Fed deceives public by rescinding Cryptocurrency Regulation"
Unleashing Crypto: Breaking Down the Mainstream Banking Frontier
Caitlin Long, helming Custodia Bank, has brought up some intriguing points about the Federal Reserve (Fed) and the hidden crypto controls that remain concrete. Even though the Fed appears to have eased up on four crypto restrictions, Long asserts that the most crucial barrier is still standing tall.
Last Sunday, Long spilled the beans about the 27th January 2023 guidance issued covertly with the Biden administration. This regulation has essentially wedged a chasm between banks and crypto assets. Banks can't directly hold crypto assets, can't cover gas fees, and are forbidden to issue stablecoins on unauthorized blockchains. Additionally, large banks are allowed to dominate the control of sanctioned blockchains.
Despite the Fed staking its claim on authorized stablecoins, putting large banks at an early advantage, Long suggests they're walking a fine line, ultimately hindering other institutions' entrance into the market. This could pave the way for a future where the big banks corner the crypto stablecoin market, thanks to the Fed's decision.
Long isn't impressed with the Fed's communication tactics, either. She argues that the media exaggerated the rescinded restrictions while keeping hush on the preservation of the major regulation. Most people—even smart ones—were deceived, she claims, and the truth would likely incite public outrage. The White House praised the Fed, but either pretended to be clueless or deliberately overlooked the situation.
The media seems more preoccupied with interest rate discussions, barely mentioning the tension in banking arrangements. Meanwhile, Cynthia Lummis, the Chair of the Senate Banking Committee's Digital Assets Subcommittee, has commented on the Fed's maneuver. Lummis labeled the Fed's move as a "show" disguise and pointed out that the Operation Chokepoint 2.0 team, active under the Biden administration, is still impacting the Fed's crypto policies today.
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(Enrichment Insights: Caitlin Long's controversy originates from regulatory changes occurring in 2023. However, her beliefs about clear, innovative regulations for crypto banking are aligned with the recent 2023 Fed withdrawal of prior restrictive guidelines regarding banks' crypto-asset and dollar token activities. These withdrawals signify that banks no longer need to notify or seek pre-approval for crypto-activities and will be supervised through standard supervisory processes. The regulatory landscape is evolving to support innovation while maintaining safety through regular oversight mechanisms.)
- In 2023, Caitlin Long, the CEO of Custodia Bank, has criticized the Federal Reserve (Fed) for concealing crypto controls, despite loosening four restrictions on banks and crypto assets.
- Long believes that the major barrier between banks and crypto assets, as per the 2023 guidance issued by the Biden administration, is still in place, influencing the finance and business sectors of technology.
- Long has accused the media of exaggerating the rescinded restrictions while keeping silent on the continued major regulation, resulting in misinformation that even smart individuals might fall for.
- Web3 technology could face challenges in the future, with large banks potentially cornering the crypto stablecoin market, thanks to the Fed's decisions and policies, as suggested by Caitlin Long.
