So, Caitlin Long — yes, the boss lady at Custodia Bank — just threw some serious shade on the U.S. Federal Reserve. Apparently, while the Fed was busy pretending to loosen up crypto rules for banks, it kept a sneaky little policy alive that basically says, “Big banks get to hoard all the stablecoin goodies.” 🙄
On April 27, Caitlin spilled the tea in a fiery X thread (because where else?) explaining that although the Fed tossed out four other crypto guidelines, it clung on to a gem from Jan 27, 2023, cooked up with the Biden crew.
This magic memo basically tells banks, “Hands off the crypto cookie jar!” — no direct crypto deals, no stablecoins on blockchains where anyone can play. Got to keep it exclusive, right?
“THE FED HAS MADE IT CLEAR: IF YOU WANT STABLECOINS, YOU NEED A VIP PASS—AKA A PERMISSIONED BIG-BANK VERSION,” Caitlin declared, as if we needed another reason to root for the little guys.
She warns this gives the traditional suits a nice comfy leg up while the rest of us twiddle our thumbs waiting for Congress to sign that stablecoin bill.
Long’s Rallying Cry: Congress, Get Your Act Together
In Caitlin’s words — Congress better “hurry up,” because when they finally pass that federal stablecoin legislation, it could stomp all over the Fed’s cozy little monopoly.
She also points out the Fed’s party pooper attitude stops banks from diving into crypto markets as big players themselves — no Bitcoin, Ether, or Solana market-making allowed here. Sad face. 😢
And just to add insult to injury, if a bank wants to offer crypto custody, they’re stuck figuring out who pays the gas fees for blockchain transactions, which is crypto 101 but apparently a no-go under current Fed rules.
Wrapping it up, Caitlin accuses the Fed of sticking “sand in the wheels” just to keep the big banks cruising ahead with their permissioned stablecoins backed by, well… major financial institutions.
Oh, and the PR game? The Fed nailed the art of quiet deceit: they broadcast the list of scrapped rules loud and proud but kept the sneaky ones on the down low. That’s how you fool *a lot* of smarty-pants people, apparently.
Senator Lummis Isn’t Having It: “Lip Service” Alert 🚨
Cynthia Lummis, crypto’s elected cheerleader, threw her hat in the ring calling the Fed’s move straight-up “lip service.” She flagged the stubborn policy in Section 9(13) that still brands Bitcoin and co. as “unsafe and unsound.” Yup, still on the naughty list.
Of course, not everyone’s whining — Michael Saylor, eternal optimist and strategy guru, took to X on April 25 saying this means banks can now start “supporting Bitcoin” like it’s their new best friend. 🤝
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2025-04-28 12:44