tl;dr
Caitlin Long, CEO of Custodia Bank, highlighted the intense conflict between traditional banks and the digital asset industry over cryptocurrency legislation in the US. Recently, the House passed three bills—the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act—with only the GENI...
The CEO of Custodia Bank, Caitlin Long, highlighted the intense struggle between traditional banks and the digital asset industry in the effort to pass cryptocurrency legislation in the US. This week, the House of Representatives passed three key bills: the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act. Of these, only the GENIUS Act, which sets federal regulations for stablecoins, has passed both chambers of Congress so far.
In a CNBC interview, Long described the process of approving these crypto bills as “an ugly sausage-making process” characterized by clashes between entrenched financial institutions and the burgeoning crypto sector. She pointed out the significant power wielded by traditional banks in this fight, but noted that the crypto industry has been gaining the upper hand.
Long expressed optimism about the crypto industry's prospects, attributing its success to the broader financial challenges facing the US, including massive fiscal deficits. She emphasized that the government’s aim is to stimulate demand for US Treasuries, and the crypto market has played a crucial role in creating new buyers for these government securities—efforts that previously operated around regulators. According to Long, the legislative developments under Congress and the Trump administration seek to formalize and support this emerging financial dynamic.