Recent efforts to block crypto companies from accessing US banks have exposed widespread corruption in the finance system. Custodia Bank CEO Caitlin Long asserts that the issue remains unresolved.
She made the remarks on Feb. 27 during Bitcoin Investor Week, drawing attention to the ongoing battle between crypto firms and regulators.
Crypto industry frustrations grow as Custodia CEO highlights corruption
Long has called the extent of corruption in Washington appalling, stating that the issues remain unresolved. Her statements highlight the growing animosity between US regulatory bodies and the crypto market.
In response to fairness requirements, regulators have restricted crypto companies from accessing core banking facilities. To address this issue, the Federal Reserve Board recently released a policy statement to establish a level playing field among all federally supervised banks.
The policy paper released Friday requires both non-insured institutions and insured banks to have the same rules in place, including rules about cryptocurrencies. The policy is supposed to fill regulatory gaps and get banks in accordance with laws in effect.
It obliges banks to maintain strong internal controls, information processes, and risk management systems to handle the related risks to these products, including cryptocurrencies.
The statement further confirms that banks can offer cryptocurrency custodian services while complying with strict consumer protection, anti-money laundering, and anti-terrorism finance laws.
Although the policy states that crypto companies should have bank access under regulatory standards, Long remains skeptical. She argues that these rules do not eliminate discrimination against companies in the crypto market.
Corruption still blocking fair banking access
The head of Custodia Bank asserts that regulatory policy currently discriminates against cryptocurrencies, preventing companies from gaining equal access to banking infrastructure.
Long’s statement highlights the widespread discontent in the crypto market. Many sector leaders have long expressed frustration over inconsistent regulations and lack of transparency. Industry leaders argue that the administration’s crypto policies stifle innovation and hinder the sector’s growth.
Despite the Federal Reserve’s efforts to create an equal playing field, the fight for equal access to banking facilities remains ongoing. Long’s remarks reveal that the battle against corruption and regulatory discrimination in the crypto market is far from won. As the market pushes for greater transparency, the outcome of this fight will play a crucial role in shaping the future of cryptocurrencies in the US.
