The crackdown of the cryptocurrency against USD hotspots has begun: Caitlin Long

Caitlin Long, founder and CEO of the pioneering crypto bank Avanti Bank & Trust, has stated that the regulatory crackdown on cryptocurrencies “has begun”.

In a long tweet on July 13, the Wall Street veteran highlighted her thoughts on the current regulatory situation in the United States and predicted that the authorities will not target Bitcoin and Ethereum directly, but will instead seek the “in between” – and “point of entry” access to the US will determine dollars in the sector.

“The problem is not Bitcoin, Ethereum or other crypto protocols, they are fine. Risks arise from the way banks operate ”.

She also noted that July 13th is a “big event” ending the comment deadline for the Federal Reserve’s proposed payment system access guidelines, arguing that the Fed’s guidelines target cryptocurrencies in part, despite being do not relate directly to the asset class.

1 / READ NEWS ON ABT regulations in #Cryptothat I’ve been recording on Twitter since April. Looks like the raid has started. I don’t know how it will turn out but:
* it has no influence #BTC #ETH etc. directly. The base classes contain the auxiliary blocks khối
* it affects intermediaries and US dollar access points

– Caitlin Long (@CaitlinLong_) July 13, 2021

The guide, proposed on May 5, outlines the system the central bank will use to assess applications for access to financial services by the agency. The proposal comes amid growing requests from fintech companies and financial institutions and providers to get access to the payment system.

Emphasizing the importance of ensuring that crypto companies have direct access to key accounts with the Federal Reserve, Caitlin cited an example from 2017. Several banks closed their accounts in 2017. stores a number of bank accounts related to the cryptocurrency connected and explains:

“It doesn’t matter if the business is legitimate or a scam – they have all been funded.”

Long stressed that similar risks still exist today, noting that leading US exchange Coinbase has raised similar concerns in its IPO prospectus.

“For our industry, it is important that law-abiding companies have direct access to US dollars on their own. It’s not just about removing the fee layers that many people in our industry suffer from just to get access to US dollars, ”she said.

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Avanti, which received its Wyoming Banking Charter in October 2020, has filed its own 18-page comment letter highlighting its concerns about the Fed’s proposed law.

Long, who co-founded the Wyoming Blockchain Alliance in 2017, was instrumental in establishing Wyoming’s simple governance for crypto businesses.