By George Ward
Cryptocurrency regulations have been a hot-button issue in the United States for some time now. This has caused a tremendous amount of uncertainty and confusion among crypto investors.
Many investors want the United States Securities and Exchange Commission (SEC) to be faster in setting up proper regulations for the crypto market. Recently, Caitlin Long, the CEO of Custodia Bank, made some big revelations about the crypto market debacle in a new blog post.
Long outlined some problems the SEC needs to face regarding regulating the crypto market.
Decoding The Turmoil In The Crypto Market
Caitlin Long, the CEO of Custodia Bank, made a factual statement regarding the crypto fiasco. She revealed that she had presented several pieces of data to the police, pointing to probable unlawful activities by cryptocurrency frauds.
This included the crypto organization that collapsed and left countless investors with losses. Furthermore, Long highlighted that they had alerted bank regulators to the mounting possibility of a bank run.
She questioned how many people had predicted the fall of the crypto firm and alerted authorities about the probability of bank runs. Meanwhile, Long believes that internet-native money exists and will be noticed.
Currently, US dollars are transferable across the web without relying on banks and without any authorization, settling almost instantaneously and at a much lower cost than existing payment systems.
She wrote:
“This technology will gradually reduce the role of banks as anyone with an internet connection can execute the code and use US dollars without any banks. Despite the attempts from the Capitol to limit this, it will only push the risks into darker corners, leaving the regulators in a constant battle with the risks appearing unexpectedly.”
Criticism Mounts As The US SEC Appears To Ignore Complaints
Co-Founder and CEO of the Kraken Exchange, Jesse Powell, recently under investigation by the US SEC, remarked on the declarations made by the head of Custodia Bank. He expressed anger, pointing out immense warning signs of unlawful activities that the regulators disregarded.
Meanwhile, James Deaton, the attorney representing XRP holders in the SEC vs. Ripple case, remarked that it’s unlikely that US Congress will intervene soon. He pointed out that the Senate will summon US SEC Chairman Gary Gensler to the Banking Committee soon.
Analysts believe that if Congress does not intervene, it will be difficult for the crypto industry to survive the strict security regulations imposed by the US SEC. It remains to be seen whether the SEC will take a more active role in regulating the crypto market or if Congress will step in and provide the proper regulatory framework.
If Congress does not act soon, the uncertainty and confusion surrounding the crypto market will likely continue. They could have lasting effects on the industry.