CEO of Custodia Criticizes U.S Authorities Over Recent Crackdown

• SBF and his inner circle contributed to the campaigns of one-third of all House members.
• Government authorities had compared her crypto bank’s business to FTX’s wrongdoing.

The U.S. government’s clampdowns and the lack of regulatory clarity have frustrated blockchain and digital currency executives. Both Coinbase CEO Brian Armstrong and Kraken CEO Jesse Powell have urged lawmakers to establish uniform regulations for digital currencies.

The CEO of Custodia, Caitlin Long, said in a blog post on February 17 that she had provided authorities with information about a crypto fraud case months earlier, which had resulted in losses for millions of the company’s clients.

According to the author’s blog article “Shame on Washington, DC for Shooting a Messenger Who Warned of Crypto Debacle,” the present enforcement measures constitute a misdirected attack on the whole sector.

Crackdown Without Clear Regulations

Several officials who were “charmed” by the scammers are now calling for a crackdown, as Long pointed out in the article. It is common knowledge that high-ranking officials from the SEC, the White House, and the CFTC all met with Sam Bankman-Fried (SBF) and FTX.

Another interesting fact is that SBF and his inner circle are thought to have personally contributed to the campaigns of one-third of all House members. According to Long’s blog post, “In a 180-degree turn, [policymakers are] now throwing the baby out with the bathwater.”

The CEO of Custodia also said that government authorities had compared her crypto bank’s business to FTX’s wrongdoing and collapse, leading to an attack on the crypto sector. Long, Armstrong, and Powell are upset because the SEC took enforcement action against the cryptocurrency industry without first establishing clear crypto laws, as the complaints suggest they should have.