Saturday, June 22, 2024

Custodia CEO Urges Regulatory Clarity as 90% of Crypto Industry Faces ‘Flush Out’ Demands

In a recent interview, Custodia Bank’s CEO, Caitlin Long, has emphasized the need for a substantial cleanup within the crypto industry. Despite her optimistic outlook on Bitcoin (BTC) as it approaches its next halvening cycle, Long believes that a significant portion of the crypto space must be eliminated or regulated more effectively.

Addressing the industry’s challenges, Long has expressed her support for the U.S. Securities and Exchange Commission (SEC) and its critiques of the crypto space. She acknowledges that not everything within the industry deserves unconditional defense and has engaged in debates with prominent figures on the matter. According to Long, the industry requires a significant overhaul, with estimates ranging from 90% to 99% of its components needing elimination.

Long warns that the crypto market has yet to complete a thorough cleansing of excessive leverage, and she fears its potential resurgence. The absence of regulated exchanges and pathways is a cause for concern, as it allows for the co-mingling of funds. Long emphasizes the necessity of establishing proper regulatory frameworks to prevent the reoccurrence of such issues.

Amidst these regulatory challenges in the United States, Long commends Wyoming’s legal framework for crypto. She praises the state’s progressive approach, which recognizes that cryptocurrencies function as bearer instruments rather than being issued by a central counterparty, similar to stocks. This recognition enables the application of bailment laws instead of commingling laws used in the securities market.

In conclusion, Custodia Bank’s CEO, Caitlin Long, stresses the need for a substantial purge within the crypto industry, expressing support for regulatory measures and highlighting Wyoming’s innovative legal framework as a positive example.

Read Also: Bitcoin (BTC) Smashes $30,000 Milestone, Triggering $207 Million Liquidation for Traders

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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