Nothing has changed in US crypto banking since Trump returned: Caitlin Long

The US authorities has done “nothing” to code crypto debanking issues since US President Donald Trump returned to the White House, according to Custodia Bank’s CEO Caitlin Long.

Speaking connected signifier astatine ETHDenver connected Feb. 28, Long said portion the “perception is that determination has been a loosening, nary of the national banking agencies person really overturned immoderate of the anti-crypto guidance.”

“It is inactive presumed unsafe and unsound for a slope to interaction a integer plus adjacent successful a de minimis amount,” Long said portion arguing that “nothing” has changed.

“That is going to change, nary doubt, but Trump hasn't projected [anything] yet.”

Caitlin Long speaking astatine ETHDenver successful Denver, Colorado connected Feb. 28. Source: ETHDenver

The CEO of the crypto-friendly slope said the White House needs to name a caller seat to pb the Federal Deposit Insurance Corporation, which Long said has largely opposed evolving with technological alteration for the champion portion of 15 years nether Martin Gruenberg leadership.

“This is wherefore the banking strategy is truthful backwards successful this country, due to the fact that for the past 15 years, we've had idiosyncratic who isn't funny successful immoderate change.”

Gruenberg, who was replaced by Acting Chair Travis Hill connected Jan. 20, had been accused of being 1 of the cardinal orchestrators of “Operation Chokepoint 2.0” — a purported federal effort to debank crypto companies.

Long acknowledged that the Securities and Exchange Commission has done a “massive 180” connected its crypto argumentation — and is waiting for a akin displacement successful banking regulation.

Related: Changing governmental scenery brings immense crypto accidental — US Rep. Steil

One time aft US President Donald Trump was inaugurated connected Jan. 20, the SEC established a Crypto Task Force led by SEC commissioner Hester Peirce to enactment this caller approach.

The SEC notably canceled a arguable rule, Staff Accounting Bulletin 121, that asked fiscal firms holding crypto to grounds them arsenic liabilities connected their equilibrium sheets. 

Long besides hopes the US passes long-awaited stablecoin legislation soon but wants to spot stronger user protections acceptable successful spot — astir notably, making definite the banks clasp connected to cash.

“The mean slope successful the United States close present holds 8 cents successful currency against each $1 of request deposits… That's fundamentally unstable and fundamentally susceptible to a slope run.”

“And successful the crypto industry, I deliberation we've learned that that concern exemplary does not work,” Long, said, citing the Silvergate Bank collapse.

To adequately support consumers, stablecoin issuers indispensable beryllium forced to clasp currency to backmost the stablecoin liability, Long said.

Magazine: Elon Musk’s program to tally authorities connected blockchain faces uphill battle