Recent efforts “Debank” crypto companies in the US have revealed a “staggering” level of corruption to government officials, and the problem has not been resolved, a banking executive said in an interview in February. 27 During the Bitcoin Investor Week.
“The greatness of Skullduggery that is happening in Washington DC is really incredible … and it has never ended,” said Custodia Bank founder and CEO, during a panel at the event.
In 2023, the US Federal Reserve, which controls banks, Custodia’s efforts to serve crypto companies by refusing to access the bank to a master account, cited Custodia’s involvement in “crypto-assets” activities.
A master account will allow the bank to maintain precautions directly to the central bank and access payment metals for inter-bank transfers. Custodia has taken legal action against the Fed in a bid to reverse the decision.
Custodia Bank CEO Caitlin Long speaks to Bitcoin Investor Week. Source: Cointelegraph
Related: FDIC releases 790 pages of letters associated with crypto in pivot regulation
The anger of the industry in the alleged Deban landed on a crescendo When a June 2024 Coinbase -led lawsuit resulted in the release of letters showing us banking regulators asked some financial institutions to “I -Pause” crypto banking activities.
U.S. president Donald Trump, who started his term on January 20, criticized the earlier administration’s approach to banks that were friendly to crypto and vowed to better include cryptocurrencies, including stablecoins, in the regulated financial system.
In an executive of January 23 orderTrump told agencies to prioritize “fair and open access to banking services” for digital asset companies.
Stablecoin scrum
However, the battle for the clarity of regulation was not finished, Long said. Instead, it emerged in a multi-directional against various types of stablecoin providers looking for rules that would like, he said.
There is a continuous “scrum between the big banks … and the incumbent stablecoin has given up, and then there is Tether,” which is not based on the US, Long said.
The result is “inconvenient -believing flow of money lost from the crypto banks and industries to people in (Washington) DC, and they will all fight,” Long said.
“I don’t know how to get it out,” he added.
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