- The recent punitive measures by the US Federal Reserve against Customers Bank have underscored the ongoing tensions between regulatory bodies and the crypto industry.
- Commentaries from industry leaders like Caitlin Long and Tyler Winklevoss further highlight the contentious environment facing crypto-friendly institutions.
- Crucial remarks from Caitlin Long of Custodia Bank suggest that regulatory actions are systematically targeting banks supportive of the cryptocurrency sector.
Discover how the Federal Reserve’s stringent actions are reshaping the crypto-banking landscape and what industry veterans are saying about these changes.
Fed’s Operation Choke Point 2.0: Intensified Scrutiny on Crypto Banks
The US Federal Reserve has reignited debate within the crypto community following its recent enforcement actions against Customers Bank. On August 8, the Fed cited insufficient anti-money laundering (AML) measures and risk management protocols as reasons for its punitive measures. This event is viewed by many within the industry as an element of the broader “Operation Choke Point 2.0,” aiming to stifle crypto-friendly banks.
Industry Reactions to Fed’s Actions
Responses from high-profile individuals in the crypto sphere were swift. Tyler Winklevoss criticized the Harris administration’s “crypto reset” initiative, branding it a scam. His remarks came following the Federal Reserve’s detailed 13-page enforcement action against Customers Bank, seen as an attempt to undermine banks that facilitate cryptocurrency transactions. Winklevoss’ sharp critique showcases growing frustrations among crypto advocates regarding federal interventions.
Caitlin Long’s Take on White House Crypto Discussions
Caitlin Long, the founder of Custodia Bank, has also been vocal about her dissatisfaction with recent interactions between crypto leaders and Democratic representatives at the White House. While there were initial hopes for constructive dialogue, Long labeled the discussions as largely ineffective. She pointed to officials like Lael Brainard for perpetuating the hostile regulatory climate against crypto-friendly banks.
Long’s Call for Action Over Rhetoric
Long criticized Lael Brainard for her role both at the Federal Reserve and now at the White House, accusing her of being a central figure in intensifying Operation Choke Point 2.0. Long emphasized the need for tangible regulatory reforms rather than unproductive meetings. She stands firm on her position that real change is necessary to protect the integrity and growth of the crypto sector.
Conclusion
The ongoing regulatory pressures exemplified by Operation Choke Point 2.0 have highlighted the fraught relationship between cryptocurrency entities and US regulators. Influential voices in the industry, like Caitlin Long and Tyler Winklevoss, have been pivotal in voicing these concerns, calling for more balanced and constructive regulatory measures. The future of crypto-friendly banks in the US remains uncertain, contingent on how these regulatory narratives unfold.
