Carlos Fernandes Caitlin Long, the founder and CEO of Custodia Bank, has expressed her concerns about the alleged favoritism shown by the U.S. Federal Reserve and other regulators towards established incumbents in the crypto market. Long believes that these regulators are granting privileges to large financial institutions while imposing stricter regulations on cryptocurrency service providers.
In a recent interview, Long, who also served on the Wyoming Blockchain Select Committee, accused the authorities of orchestrating a coordinated crackdown on crypto banking services, with the involvement of the White House. She found it interesting that after regulatory actions were taken against prominent players in the crypto industry, major incumbents such as Charles Schwab, Citadel Securities, and Fidelity Digital Assets announced the launch of EDX, a cryptocurrency exchange.
Long believes that this situation indicates a biased approach by state financial institutions like the Federal Reserve, as they seem to be selectively allowing certain companies and banks to access their services. She stated that the Fed appears to think that only large incumbents should be involved in servicing the crypto market, while compliant startups are being excluded.
Custodia Bank, under Long’s leadership, has been striving to gain admission as a Federal Reserve member and secure a Federal Reserve Master Account. However, their request was denied due to the perceived risks associated with their focus on crypto-assets. Long has discovered that other institutions, which did not meet the legal qualifications for a Fed master account, have been utilizing one for some time, as revealed by the recently released master account database.
Questioning the authority by which the Fed granted master accounts to ineligible institutions, Long and Custodia Bank, in collaboration with the state of Wyoming, have taken legal action against the Federal Reserve for denying them access to the central bank’s payments system.
What are your thoughts on Caitlin Long’s perspective regarding financial incumbents and their involvement in the crypto industry? Feel free to share your opinions in the comments section below.
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Frequently Asked Questions (FAQs) about regulatory bias
What is Caitlin Long’s stance on financial incumbents and crypto?
Caitlin Long believes that the U.S. Federal Reserve and other regulators show favoritism towards established incumbents in the crypto market. She claims that these regulators grant privileges and access to services primarily to large financial institutions while imposing stricter regulations on cryptocurrency service providers and startups.
Why did Caitlin Long accuse the Federal Reserve of regulatory bias?
Caitlin Long accused the Federal Reserve of regulatory bias because she observed a coordinated crackdown on cryptocurrency banking service providers. She found it interesting that after regulatory actions were taken against prominent players in the crypto industry, major incumbents like Charles Schwab, Citadel Securities, and Fidelity Digital Assets were able to launch a cryptocurrency exchange. Long believes that state financial institutions, including the Federal Reserve, selectively choose which companies and banks can access their services, thereby favoring incumbents.
What challenges has Custodia Bank faced in relation to the Federal Reserve?
Custodia Bank, under Caitlin Long’s leadership, faced challenges in gaining admission as a Federal Reserve member and obtaining a Federal Reserve Master Account. Their request was denied due to perceived safety and soundness risks associated with their proposed focus on crypto-assets. However, Long discovered that other institutions, which did not qualify legally for a Fed master account, had been granted access. As a result, Custodia Bank, in collaboration with the state of Wyoming, has taken legal action against the Federal Reserve for denying them access to the central bank’s payments system.
What actions has Caitlin Long taken in response to the regulatory bias?
In response to the perceived regulatory bias, Caitlin Long and Custodia Bank have taken legal action against the Federal Reserve. They aim to challenge the denial of access to the central bank’s payments system and to highlight the granting of master accounts to ineligible institutions. Long has been vocal about the need for fair and equal treatment of compliant startups in the crypto industry and has been actively advocating for a more inclusive regulatory environment.
More about regulatory bias
- Custodia Bank
- Federal Reserve
- Charles Schwab
- Citadel Securities
- Fidelity Digital Assets
- Wyoming Blockchain Select Committee
- Federal Reserve Master Account
5 comments
i think it’s interestin that the fed thinks only big incumbents should service crypto startups that play by the rules are being kept out that’s not fair at all regulators should support innovation and competition not just the established players!
i’m impressed by caitlin long’s determination and advocacy for fair treatment of startups in the crypto space it’s unacceptable that the fed is picking and choosing who gets access to their services everyone should have a chance to succeed and innovate in this rapidly evolving industry.
the regulatory bias in the crypto industry is a real issue it’s good to see someone like caitlin long raising awareness about it the federal reserve and other authorities need to level the playing field and provide equal opportunities for all participants in the market not just the incumbents!
Custodia bank is fighting for their rightful place in the financial system it’s unfair that they were denied access to the fed’s services just because they focus on crypto-assets meanwhile other institutions that don’t even qualify are getting special treatment kudos to caitlin long for taking legal action!
caitlin long really know her stuff when it comes to the bias of the fed and other regulators in the crypto market she’s not afraid to call them out on their favoritism towards the big guys it’s important for startups to have a fair chance too so glad she’s speaking up!