Caitlin, CEO of the Gustodia Bank, accused the American federal reserve of quietly maintaining anti-Crypto policies which promote large banks while presenting an appearance of regulatory relaxation.
Long criticized the Fed for having canceled several restrictive cryptography policies last week while keeping in place a key rule of January 2023 which prevents banks from engaging directly with the crypto.
She warned that this decision would create an unfair advantage for large banks seeking to issue private stablecoins while stifling innovation on private networks.
Fed crypto policy
In a detailed article on social networks, Long argued that although the Fed fell four orientations, it has deliberately retained an intact critical policy. The policy prohibits banks from holding cryptocurrencies for their own accounts, even to cover the small blockchain transaction costs.
It also prohibits banks from emitting stalls on public blockchains like Ethereum (ETH), instead of promoting private networks generally authorized by large financial institutions.
Long said:
“The Fed has definitely won over Pr Spin.”
She added that the central bank’s announcement on April 24 indicated each orientation that he canceled but made no mention of the rule it left intact. She also explained that the remaining policy severely limits the capacity of banks to offer cryptography guard services.
Under current rules, banks are unable to pay the fluctuating gas costs of their pocket when processing chain transactions, a technical obstacle that effectively undermines their ability to serve customers of digital assets.
Private blockchains and regulatory control
Long criticisms intervene in a context of increasing concerns that the Fed promotes private blockchain solutions controlled by large banks, while slowing down the adoption of decentralized public blockchain networks.
She warned that this strategy could anchor the domination of large banks in the emerging markets of the stablescoin, giving them one step ahead while other institutions await new federal stablecoin legislation.
Meanwhile, senator Cynthia Lummis recently echoed Long concerns and criticized the latest Fed decline as “Just Lip Service”.
Lummis argued that the Central Bank continues to manipulate “reputation risk” warnings to prevent banks from engaging with Bitcoin and other digital assets, labeling them “dangerous and unrelated”.
Despite the administration of President Donald Trump, which makes efforts towards a wider thrust for a more friendly, long and Lummis environment argue that federal regulators remain resistant to large -scale blockchain innovation.
