Caitlin Long Criticizes Washington’s Crypto Regulatory Approach

Caitlin Long’s Bold Statement

Caitlin Long, the outspoken CEO of Custodia Bank, is not one to hold back her thoughts, especially when it comes to regulators and lawmakers in Washington D.C. In her recent blog post titled “Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle”, she let loose on the misguided calls for a crackdown on the crypto sector, which she argues have overlooked major fraud and even harmed legitimate players.

A Different Approach to Regulation

Long contends that the government’s approach is akin to playing a never-ending game of whack-a-mole. “Washington’s misguided crackdown,” she warns, “will only push risks into the shadows.” This isn’t just a call for a rethink; it’s a clarion call for re-engagement and sensible policy that protects investors without steering innovations and integrity off a cliff.

The Irony of Regulation by Enforcement

“Custodia tried to become federally regulated – the very result bipartisan lawmakers claim they want,” she stated, showcasing the paradox of being punished for trying to do the right thing. Instead of a welcoming environment for those making earnest efforts to stay compliant, she faces challenges from multiple federal entities who seem unfazed by her proactive measures.

Unheeded Warnings: The Cry from the Crypto Frontlines

Long isn’t standing alone. Jesse Powell, co-founder of Kraken, echoed her sentiments, expressing frustration over years of ignored red flags regarding illegal activities in the crypto space. It’s a shared feeling between innovative leaders who believed that communicating potential threats would produce action – only to be left feeling dismissed. It’s like repeatedly ringing the doorbell during a dinner party while everyone inside pretends not to hear.

The Lasting Effect of Misguided Policies

“Calls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters,” said Long, highlighting a troubling cycle in which regulators cling to outdated paradigms. What remains abundantly clear is that if effective communication continues to falter, we may just witness a continued descent of crypto into a more obscure realm.