Caitlin Long takes aim at The New York Times over crypto ‘alarm’ article
Regulated crypto bank Avanti corporate executive Caitlin Long says tarring the complete crypto trade with a similar brush is unfair.
Avanti Bank and Trust chief operating officer Caitlin Long has denote a rebuttal to a recent NY Times article claiming that crypto and redistributed finance is “disrupting the banking industry” thus quick regulators cannot carry on.
Disrupting ancient finance is precisely what crypto and DeFi aspires to try and do, however the piece titled “Crypto’s speedy get in Banking Elicits Alarm in Washington” revealed on Sept. 5 had variety of inaccuracies and omissions per Long.
The primary argument of the piece — using DeFi startup BlockFi as AN AN that crypto derivatives and extremely leveraged merchandise became a nightmare for regulators that ar scrambling to catch up. High-stakes speculation is going away investors susceptible to major losses per the NYT.
But Long declared that the problem isn’t black and white and recommended that “anti-crypto forces” ar perpetually making an attempt to color the whole trade with an equivalent brush. “Bad actors need to be known as out, however the article ignores the very fact that regulatory-compliant corporations exist,” she adscititious.
Long took specific issue with the actual fact that the article did not mention that absolutely regulated crypto banks exist already, like her own Wyoming-based Avanti, that launched in Oct 2020.
She expressed that Wyoming’s special charter doesn’t permit “cryptocurrency deposits.” Regulated banks will give custody services for crypto, she continuing to clarify, however cannot take deposits in something except rescript currency.
“Article misses that critical point — it’s a firewall protecting Fed’s payment system from exposure to anything other than $ [USD].”
The article conjointly known that several crypto intermediaries have introduced a number of the “bad behavior” from ancient finance like extreme leverage while not requiring a capital buffer. These are truthful criticisms, in keeping with Long, Who has antecedently cautioned concerning leverage, adding that terribly Fe crypto intermediaries, like brokers or third parties acting between the bank and also the blockchain, disclose data concerning their reserves.
Long explicit that DeFi platforms above all do a much better job with transparency than crypto intermediaries or ancient banks that remains one in every of its best attributes. Banks settle their books once every day whereas crypto is settled in minutes, and for that reason, the Avanti Bank chief operating officer concluded:
“Regulated banks that handle crypto need to be in a straightjacket. That’s the only safe & sound way to integrate the crypto & traditional systems.”
Vehemently anti-crypto U.S. legislator Elizabeth Warren was still on the warpath in the week once she tagged the whole cryptocurrency business the “new shadow bank” as reportable on Sept seven. She expressed specific considerations over stable coins and their apparent lack of transparency relating to reserves.