The CEO of Custodia Bank, Caitlin Long, has slammed regulators and lawmakers in Washington D.C. for their “misguided crackdown” on the crypto sector and ignoring her warnings of major “fraud” allegedly conducted by now-bankrupted entities.
În 17 februarie blogul post titled, Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle, Long tore into the government for its approach to crypto regulation, failing to protect investors and alienating good actors in the space:
„Reprimarea greșită a Washingtonului nu va face decât să împingă riscurile în umbră, lăsând autorităților de reglementare să se joace la joc de cârtițe, pe măsură ce riscurile apar continuu în locuri neașteptate.”
Long stressed that with her digital asset custody firm, she’s “been calling out the worst of crypto while trying to build a lawful, compliant alternative that relegates scams to the trash heap. But […] most of today’s policymakers seem intent on killing the high-integrity innovators.”
The Custodia Bank CEO claimed that her efforts to work with government agencies were ultimately thrown back in her face as she recounted the spate of negative run-ins her firm has had of late.
Her sentiments echo that of figures such as Coinbase CEO Brian Armstrong, who has suggested on multiple occasions that agencies like the Securities and Exchange Commission (SEC) have reacted frostily to his firm’s efforts to maintain a dialogue in good faith.
Earlier this month, Armstrong also criticized the lack of regulatory clarity in the U.S. and what appears to be a “regulation by enforcement” approach following the SEC’s move to shut down Kraken’s staking services în februarie 9.
“Today’s regulators and lawmakers in Washington are no doubt embarrassed that they failed to stop the criminals of crypto. DC is demanding scalps,” Long wrote in the blog post, adding that:
“Calls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters. In a 180-degree turn, they’re now throwing the baby out with the bathwater.”
Unheeded warnings
Over on Twitter, Long also suggested that well before the implosion of several crypto firms in 2022, she and many others had tried to warn Washington and “help law enforcement stop” major fraud, but to no avail.
Related: SEC vs. Kraken: O salvă unică sau de deschidere într-un atac asupra cripto-ului?
Long publicly disclosed for the first time that she had “handed over evidence to law enforcement of probable crimes” committed by an unnamed crypto firm “months before that company imploded and stuck its millions of customers with losses.”
1/ A ESTE TIMPUL SA DEZVEZ CÂTEVE LUCRURI. Tocmai am publicat o postare „Shame On Washington, DC for Shooting A Messenger Who Warned Of #Crypto Debacle.” Linkul către postare este aici:https://t.co/yTWWrEk3Os pic.twitter.com/rbo21DzOv3
— Caitlin Long ⚡️ (@CaitlinLong_) 17 Februarie 2023
Kraken co-founder and CEO Jesse Powell responded to Long’s Twitter thread and corroborated her statements by noting that: “I can’t 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.”
Nu vă pot spune cât de enervant este să fi semnalat semnale roșii masive și activități evident ilegale autorităților de reglementare doar pentru ca aceștia să ignore problemele ani de zile. „Sunt offshore. Este complicat. Ne uităm la toți.” PENTRU ANI. Apoi să fie folosite ca exemplu. https://t.co/YHdNazM2UE
- Jesse Powell (@jespow) 18 Februarie 2023
Source: https://cointelegraph.com/news/custodia-bank-ceo-slams-washington-s-misguided-crackdown-on-crypto