The CEO of Custodia Financial institution Caitlin Lengthy has slammed regulators and lawmakers in Washington D.C. for his or her “misguided crackdown” on the crypto sector, and in addition for ignoring her warnings of main “fraud” allegedly performed by now-bankrupted entities.
In a Feb. 17 weblog publish titled “Disgrace On Washington, DC For Capturing A Messenger Who Warned of Crypto Debacle,” Lengthy tore into the federal government for its strategy to crypto regulation, failing to guard traders and alienating good actors within the area:
“Washington’s misguided crackdown will solely push dangers into the shadows, leaving regulators to play whack-a-mole because the dangers constantly pop up in sudden locations.”
Lengthy harassed that together with her digital asset custody agency, she’s “been calling out the worst of crypto whereas making an attempt to construct a lawful, compliant different that relegates scams to the trash heap. However […] most of at this time’s policymakers appear intent on killing the high-integrity innovators.”
The Custodia Financial institution CEO claimed that her efforts to work with authorities companies had been in the end thrown again in her face, as she recounted the spate of destructive run-ins her agency has had of late.
“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 ground speech),” she stated, including that:
“Custodia tried to turn out to be federally regulated – the very end result bipartisan policymakers declare to need. But Custodia has been denied and now disparaged for daring to come back via the entrance door.”
Her sentiments echo that of figures equivalent to Coinbase CEO Brian Armstrong, who has instructed on a number of events that the companies such because the Securities and Alternate Fee (SEC) have reacted frostily to his agency’s efforts to keep up a dialogue in good religion.
Earlier this month, Armstrong additionally criticized the shortage of regulatory readability within the U.S. and what seems to be a “regulation by enforcement” strategy following the SEC’s transfer to close down Kraken’s staking companies on Feb. 9.
“As we speak’s regulators and lawmakers in Washington are little question embarrassed that they did not cease the criminals of crypto. DC is demanding scalps,” Lengthy wrote within the weblog publish, including that:
“Requires a crackdown at this time are coming from lots of the identical policymakers who had been charmed by the fraudsters. In a 180-degree flip, they’re now throwing the infant out with the bathwater.”
Unheeded warnings
Over on Twitter, Lengthy additionally instructed that effectively earlier than the implosion of a number of crypto corporations in 2022, she and plenty of others had tried to warn Washington and “assist legislation enforcement cease” main fraud, however to no avail.
Associated: SEC vs. Kraken: A one-off or opening salvo in an assault on crypto?
Lengthy said that she was publicly disclosing for the primary time that she had “handed over proof to legislation enforcement of possible crimes” dedicated by an unnamed crypto agency “ months earlier than that firm imploded and caught its tens of millions of shoppers with losses.”
1/ IT’S TIME FOR ME TO REVEAL A FEW THINGS. I’ve simply printed a publish “Disgrace On Washington, DC For Capturing A Messenger Who Warned Of #Crypto Debacle.” Hyperlink to publish is right here:https://t.co/yTWWrEk3Os pic.twitter.com/rbo21DzOv3
— Caitlin Lengthy
(@CaitlinLong_) February 17, 2023
Kraken co-founder and CEO Jesse Powell responded to Lengthy’s Twitter thread, and basically corroborated her statements by noting that: “I am unable to let you know how infuriating it’s to have identified large pink flags and clearly criminality to regulators solely to have them ignore the problems for years.”
I am unable to let you know how infuriating it’s to have identified large pink flags and clearly criminality to regulators solely to have them ignore the problems for years. “They’re offshore. It is sophisticated. We’re taking a look at all people.” FOR YEARS. Then for use as their instance. https://t.co/YHdNazM2UE
— Jesse Powell (@jespow) February 18, 2023
from Blockchain – My Blog https://ift.tt/cq6eG12
via IFTTT