- Crypto -Debanking -problems continue to exist, despite the observed regulatory relaxation under the Trump administration.
- The reform of the FDIC is urgent because outdated policy impedes crypto integration into banking.
Despite the first optimism on pro-Crypto policy in the Trump era, recent developments have made doubts about the position of the administration.
Although the enforcement of the regulations against large crypto companies seems to be relaxed, the broader financial ecosystem remains largely unchanged.
Caitlin Long has a different perspective on Trump
According to Caitlin Long, CEO of Custodia Bank, the US government has not made any real progress in tackling crypto -debanking issues since the return of Trump to the White House.
Speaking in Ethdenver on February 28, long marked That, despite the perception of a more favorable regulatory climate, federal bank agencies still have to reverse their anti-Cypto guidelines.
This growing decoupling between expectations and reality has led to concern within the industry, so that questions are raised about whether meaningful policy shifts will come true.
“It is still unsafe and inadequate assuming a bank to touch a digital active, even in a minimum amount. That will undoubtedly change, but Trump has not suggested [anything] yet.”
Trump’s recent step sends shock waves
This development follows a brief recovery of the shock waves caused by the rate announcements of Donald Trump on Canada and Mexico and also About the European Union, indicates an aggressive trade policy.
In the midst of this economic uncertainty, Long has called for urgent reforms within American financial institutions, in particular the Federal Deposit Insurance Corporation (FDIC).
She emphasized the need for new leadership at the FDIC, with the argument that the agency under the 15-year term of office of Martin Gruenberg has resisted to adapt to technological progress.
“This is why the banking system is so back in this country, because we have had someone who is not interested in any change in the last 15 years.”
That is why the crypto industry can continue to be confronted without a shift in the Institutional Barriers approach, despite a broader relaxation of the regulations.
What is more?
For those who are not aware, after the departure of Martin Gruenberg on January 20, acting chairman Travis Hill now leads the FDIC, but the concern about previous regulatory actions continues to exist.
Gruenberg was generally accused of spearheads “Operation Chokepoint 2.0”, an alleged federal campaign aimed at cutting off the Crypto companies of banking services.
Although the SEC has dramatically reversed its attitude towards crypto, Caitlin Long therefore believes that a similar shift is still needed in the banking instructions.
She also argues for the rapid passage of the Stablecoin legislation, but emphasizes the importance of strong consumer protection, in particular ensuring that banks maintain sufficient cash reserves.
In conclusion, she stated it best when she said,
“The average bank in the United States now has 8 cents in cash at every $ 1 of the demand deposits … that is fundamentally unstable and fundamentally susceptible to a bank run.”