Feb 19, 2023

Washington Slammed for Ignoring Warnings of Crypto Fraud

Custodia Bank CEO Caitlin Long has expressed her frustration with the Washington D.C. regulators and lawmakers for their “misguided crackdown” on the crypto sector and for disregarding her warnings of potential fraud by now-bankrupt entities.

In a blog post titled Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle, Long harshly criticized the government’s approach to crypto regulation, which has failed to protect investors and alienated good actors in the space.

“Washington’s misguided crackdown will only push risks into the shadows, leaving regulators to play whack-a-mole as the risks continuously pop up in unexpected places,” Long wrote.

She further stated that Custodia Bank has been trying to build a lawful, compliant alternative to scams, but that most policymakers seemed intent on killing the high-integrity innovators.

Long also shared that Custodia Bank has been attacked by the White House, the Federal Reserve Board of Governors, the Kansas City Fed and Senator Dick Durbin, despite their efforts to become federally regulated.

This sentiment was echoed by Coinbase CEO Brian Armstrong, who has voiced his displeasure with the lack of regulatory clarity in the U.S. and what appears to be a “regulation by enforcement” approach.

Long revealed on Twitter that she had handed over evidence to law enforcement of probable crimes committed by an unnamed crypto firm months before it imploded and left its customers with losses.

Kraken co-founder and CEO Jesse Powell responded to Long’s thread, noting that it was “infuriating” to have pointed out red flags and illegal activity to regulators only to have them ignore the issues for years.

As the crypto sector continues to grow, the need for clear and effective regulation has become increasingly apparent. To ensure the safety of investors and the integrity of the industry, regulators must work with firms in the space to create a framework that promotes ethical practices and protects consumers.

At the same time, it is essential for crypto firms to be proactive in their efforts to comply with regulations and to be transparent about their operations. NFTs, in particular, have seen an explosion in popularity, and NFT marketing agencies are popping up to help crypto firms promote their products.

Twitter NFT marketing is becoming increasingly popular, and NFT marketing agencies are offering services such as content creation, influencer marketing, and community building to help crypto firms sell NFTs.

Web3 agencies are also emerging to help crypto firms navigate the web3 space and ensure compliance with regulations.

Ultimately, it is essential for regulators, lawmakers, and crypto firms to work together to create an environment that is conducive to innovation and protects investors.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.