{"id":17816,"date":"2023-02-18T19:04:40","date_gmt":"2023-02-18T19:04:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/custodia-ceo-slams-us-government-over-broad-crackdown-lack-of-regulatory-clarity-in-crypto-industry-regulation-bitcoin-news\/"},"modified":"2023-02-18T19:04:40","modified_gmt":"2023-02-18T19:04:40","slug":"custodia-ceo-slams-us-government-over-broad-crackdown-lack-of-regulatory-clarity-in-crypto-industry-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/custodia-ceo-slams-us-government-over-broad-crackdown-lack-of-regulatory-clarity-in-crypto-industry-regulation-bitcoin-news\/","title":{"rendered":"Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Caitlin Long, CEO of crypto bank Custodia, criticized the U.S. government for its handling of a massive crypto fraud that occurred months before the company\u2019s collapse. She made her remarks in a blog post after disclosing evidence to law enforcement. Long\u2019s post followed Custodia\u2019s unsuccessful application to become a member of the Federal Reserve System, which was denied by the Federal Reserve Board.<\/strong><\/p>\n

CEO of Custodia Criticizes U.S. Government for \u2018Shooting a Messenger Who Warned of Crypto Debacle\u2019<\/h2>\n

Executives of digital currency and blockchain companies are displeased with the U.S. government\u2019s crackdowns and lack of regulatory clarity. Brian Armstrong, CEO of Coinbase, has called<\/a> on Congress to pass clear legislation on cryptocurrencies, and Jesse Powell, CEO of Kraken, has echoed<\/a> that message. On Feb. 17, Caitlin Long<\/a>, CEO of Custodia, published a blog post<\/a> explaining that she had given evidence to authorities about a crypto fraud case months before the company collapsed, leaving its millions of customers with losses.<\/p>\n

In her blog post titled \u201cShame on Washington, DC for Shooting a Messenger Who Warned of Crypto Debacle,\u201d Long argues that the current enforcement actions are a misguided crackdown on the entire industry. \u201cCalls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters,\u201d Long wrote. It is well known that senior members<\/a> of the U.S. Securities and Exchange Commission (SEC), the White House<\/a>, and the Commodity Futures Trading Commission<\/a> (CFTC) met with Sam Bankman-Fried<\/a> (SBF) and high-ranking FTX officials.<\/p>\n

\"Custodia
The U.S. Federal Reserve Board recently rejected the attempt of Custodia Bank to become a member of the Federal Reserve System.<\/figcaption><\/figure>\n

Additionally, an estimated one in three members<\/a> of Congress received a direct contribution<\/a> from SBF and his inner circle. \u201cIn a 180-degree turn, [policymakers are] now throwing the baby out with the bathwater,\u201d Long wrote in her blog post. The Custodia CEO also mentioned that government officials likened her crypto bank\u2019s operation<\/a> to FTX\u2019s misconduct and collapse, resulting in an ambush on the crypto industry by officials.<\/p>\n

\u201cCustodia Bank recently found itself in the crosshairs of Beltway Politics at their worst,\u201d Long stressed. \u201cCustodia 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<\/a>, in which he attacked two companies run by female CEOs \u2014 Fidelity and Custodia \u2014 implicitly comparing us to a 29-year-old accused fraudster who is now wearing an ankle bracelet).\u201d<\/p>\n

The Custodia CEO added:<\/p>\n

\n

Custodia tried to become federally regulated \u2013 the very result bipartisan policymakers claim to want. Yet Custodia has been denied and [is] now disparaged for daring to come through the front door.<\/p>\n<\/blockquote>\n

After Long published her blog post about the situation, Jesse Powell, CEO of Kraken, responded<\/a> to her Twitter thread on the subject. \u201cI can\u2019t 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,\u201d Powell tweeted. \u201c\u2018They\u2019re offshore. It\u2019s complicated. We\u2019re looking at everybody.\u2019 FOR YEARS. Then to be used as their example.\u201d<\/p>\n

The complaints from Long, Armstrong, and Powell come after the SEC\u2019s enforcement action against Terraform Labs and CEO Do Kwon, nine months after the entire Terra ecosystem collapsed. The U.S. securities regulator was criticized for being late to the game<\/a>, and many believe the SEC is simply throwing spaghetti at the wall to see what will stick.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Blog Post<\/a>, Brian Armstrong<\/a>, Broad Crackdowns<\/a>, Caitlin Long<\/a>, ceo<\/a>, CFTC<\/a>, Coinbase<\/a>, collapse<\/a>, Congress<\/a>, Crackdown<\/a>, crypto industry<\/a>, Cryptocurrency<\/a>, Custodia<\/a>, do kwon<\/a>, enforcement actions<\/a>, Fraud<\/a>, ftx<\/a>, FTX collapse<\/a>, Jesse Powell<\/a>, Kraken<\/a>, misconduct<\/a>, offshore<\/a>, overregulation<\/a>, policymakers<\/a>, red flags<\/a>, regulatory clarity<\/a>, Sam Bankman-Fried<\/a>, sbf<\/a>, SEC<\/a>, securities regulator<\/a>, spaghetti<\/a>, terraform labs<\/a>, Twitter<\/a>, US government<\/a>, White house<\/a><\/div>\n<\/div>\n

What is your opinion on the criticisms from Custodia\u2019s CEO regarding the U.S. government\u2019s handling of the recent enforcement actions in the crypto industry and the red flags she pointed out before a crypto company\u2019s collapse? Share your thoughts on this topic in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n