Trump's White House: A Crypto Tale of Stagnation 🎩🐭

In the land where the buffalo roam and the deer and the antelope play, the US government, under the watchful eye of the returned maestro of Twitter, Donald Trump, has done what some might call a “whole lotta nothin'” when it comes to the plight of crypto debanking, says Custodia Bank’s head honcho, Caitlin Long. 🏛️💸

At the grand powwow of ETHDenver, on the sacred day of Feb. 28, Long, with the poise of a prairie sage, declared that while the air might be thick with the scent of change, the federal banking agencies are clinging to their anti-crypto stances like a tick on a hound dog. 🎩🐶

“It’s still deemed downright reckless for a bank to so much as wink at a digital asset, even if it’s just a smidgen,” Long proclaimed, her voice echoing through the hall. “So, in the grand scheme of things, nothin’s changed, folks.” 🤷‍♀️💰

“But change is a-comin’, no doubt about it. Trump just hasn’t put his signature flourish on it yet.”

The CEO of this crypto-friendly bank of the Wild West went on to say that the White House is in dire need of a new sheriff to head the Federal Deposit Insurance Corporation, a role held by Martin Gruenberg, who’s been as resistant to change as a mule in quicksand for the better part of 15 years. 🤠🐴

“This here is why our banking system is more backward than a possum’s smile in a sunflower field. We’ve had a leader who’s as interested in change as a cat is in water.”

Gruenberg, who’s been swapped out for Acting Chair Travis Hill, was rumored to be the mastermind behind “Operation Chokepoint 2.0,” a fancy name for the fed’s attempt to give crypto companies the boot. 👢💨

Long gave a nod to the Securities and Exchange Commission for doing a “massive 180” on crypto policy, but she’s still waitin’ with bated breath for the banking regulations to follow suit. 🔄💼

On the very next day after Trump’s second inauguration, the SEC saddled up and formed a Crypto Task Force, with SEC commissioner Hester Peirce at the reins, to herd this new approach in the right direction. 🤠🐎

They even went and scrapped that controversial rule, Staff Accounting Bulletin 121, which was about as popular as a skunk at a garden party, askin’ financial firms to treat crypto like a liability on their balance sheets. 🦨🎈

Long’s also hopin’ the US will pass some stablecoin legislation sooner rather than later, but she’s adamant that it’s got to come with some real consumer protections—like makin’ sure banks have enough cold, hard cash on hand. 💼👛

“Right now, the average bank’s got a measly 8 cents in cash for every dollar of demand deposits… That’s about as stable as a one-legged stool in a hurricane, and just as susceptible to a good ol’ fashioned bank run.”

Long, with a nod to the fall of Silvergate Bank, insisted that to truly protect consumers, stablecoin issuers need to be sittin’ on a pile of cash that backs up their stablecoin liabilities. 🏦💳

“Trump’s White House: A Crypto Tale of Stagnation 🎩🐭”

2025-03-02 04:14

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