In a recent appearance as a guest on the Thinking Crypto podcast, Caitlin Long, who holds the position of CEO at Custodia Bank, openly shared her concerns regarding the Federal Reserve’s (FED) stance on cryptocurrencies and its regulatory approach toward fintech companies.
Long specifically highlighted what she recognizes as an evident “incumbency bias” displayed by the Fed, which leads to different treatment of established financial institutions in contrast to emerging crypto-focused businesses.
Caitlin Long said, “We don’t know there is clear incumbency bias, that custodia after the initial denial by the FED, resubmitted its business plan to exactly what the FED had approved Bank of New York Mellon to do just months before and then voted custodia down a second time.”
Long argues that the Federal Reserve’s strict measures have acted as a barrier for cryptocurrency companies in pursuit of their regulatory approval. As a result, these businesses have redirected themselves toward unregulated paths to carry out their operations.
Long claims that the Federal Reserve knowingly led Custodia through a thorough application process, providing favorable feedback along the way, but ultimately rejected the application and provided a highly negative evaluation.
Even though Custodia Bank is having problems with the Federal Reserve, the CEO said they are close to offering special services for institutional clients who want to store their Bitcoins. These services will have new things that aren’t available now.
The CEO also talked about a plan they have. They want to make sure people can control their own Bitcoins, but they also want to use Custodia Bank’s protection.
Also Read: Coin Center Advises Senators on Crypto Taxation Framework
