Caitlin Long slams US Fed over stablecoin policy favoring big banks
Caitlin Long, CEO of Custodia Bank, criticized the US Federal Reserve for maintaining an anti-crypto policy that favors stablecoins issued by large banks while relaxing some crypto partnership rules. The Fed rescinded four crypto guidelines but retained a January 2023 statement that restricts banks from directly engaging with crypto assets and issuing stablecoins on permissionless blockchains. Long warned this gives traditional banks an advantage in launching private stablecoins as Congress deliberates on stablecoin legislation. She emphasized that the Fed's policies hinder banks from participating in crypto markets and offering custody services. Senator Cynthia Lummis condemned the Fed's actions as “lip service,” highlighting ongoing regulatory challenges. Some crypto executives viewed the Fed's announcement positively, suggesting it allows banks to support Bitcoin.
