Yeah, yeah, the BNY Mellon entered the crypto custody enterprise. The true story right here is Custodia Financial institution’s Caitlin Lengthy’s emotional speech at DC Fintech Week. The bitcoin fanatic banker left the remainder of the panel speechless by accusing the Federal Reserve of giving preferential remedy to BNY Mellon. “We’ve been ready for 2 and a half years to try this,” Caitlin Lengthy mentioned referring to Custodia Financial institution and bitcoin custody companies.
Watch what they don’t what they are saying. #Bitcoin pic.twitter.com/WV2YtXhCkX
— Magoo PhD (@HodlMagoo) October 11, 2022
She’s an expert, however it’s apparent that Caitlin Lengthy is making an effort to carry all of it in. She publicizes that the BNY Melon “has formally now entered bitcoin custody” and poses the query of “whether or not crypto actually is dangerous throughout the conventional banking system.” You see, BNY Mellon is a “financial institution holding firm supervised by the Federal Reserve,” so that they needed to approve of this. For his or her half, Custodia Financial institution is an entity that’s suing the Federal Reserve as a result of they received’t enable them to offer that very same service.
Lengthy finishes her brief however highly effective speech by threatening the Fed, “you will note a filling from my firm in that lawsuit pertaining to the announcement this morning.” The BNY Mellon announcement, that’s.
BNY Mellon And Crypto, What Do We Know?
When mainstream media experiences on bitcoin and crypto, it’s largely doom and gloom. When Reuters experiences about BNY Mellon entering into the crypto custody enterprise, it’s all about “tapping into the recognition of bitcoins and ethers” and “buying and selling in cryptocurrencies has skyrocketed worldwide.” And we’re not complaining. With respect, the information company informs that “the 238-year-old financial institution received the approval of New York’s monetary regulator earlier this fall.”
Within the article, we additionally be taught that BNY Mellon “shaped a unit in 2021 to develop options for digital asset know-how.” Apparently, they’ve huge plans:
“Crypto is absolutely simply the “tip of the spear”, however tokenized belongings maintain a number of promise regardless of being the least developed, mentioned Michael Demissie, head of digital belongings and superior options at BNY Mellon, including {that a} current financial institution examine confirmed over 90% of institutional buyers had been seeking to spend money on the section.”
So, the place is the “crypto is dangerous throughout the conventional banking system” perspective right here? Is the crypto holding enterprise any completely different simply because BNY Mellon is concerned?
BTC value chart for 10/12/2022 on Cexio | Supply: BTC/USD on TradingView.com
What Did The Fed Say About Crypto Lately?
In her heartfelt speech, Caitlin Lengthy talked about that the Federal Reserve not too long ago mentioned that “crypto is dangerous throughout the conventional banking system.” She refers back to the report titled “The Monetary Stability Implications of Digital Belongings,” printed by the Federal Reserve Financial institution of New York. It’s a hilarious learn, contemplating that a couple of days later they licensed BNY Mellon to offer crypto holding companies. For instance, within the intro the Fed says:
“Because the digital asset ecosystem grows, turns into extra interconnected with the standard monetary system, and mimics merchandise and constructions of conventional finance, it creates new potential challenges to monetary stability. The digital asset ecosystem replicates lots of the identical kinds of market failures and vulnerabilities that come up in conventional finance—typically with out regulatory safeguards—whereas additionally introducing new dangers.”
Sounds regarding. Except BNY Mellon is concerned by some means. In a piece titled “Regulatory Challenges,” the Fed additional elaborates:
“Digital belongings don’t match neatly into the U.S. regulatory framework, and opacity, extraterritoriality, and new authorized constructions create additional challenges. Restricted or no regulation of key entities contribute to fragilities within the digital asset ecosystem.”
Nevertheless, it’s advantageous if BNY Mellon desires to do it.
The Twitterati React To The BNY Mellon Controversy
- Kraken’s Jesse Powell is outraged, “completely infuriating and unjustifiable remedy. It’s “dangerous”, besides when your homies need to do it.” And by “your homies” Powell means BNY Mellon.
Completely infuriating and unjustifiable remedy. It is “dangerous”, besides when your homies need to do it. Godspeed, @CaitlinLong_
System was rigged the identical with COVID. The regulator spreads FUD, bans legit remedy till the revolving door cronies give you a option to revenue. https://t.co/dBvUqvnWVk
— Jesse Powell (@jespow) October 11, 2022
- The Digital Asset Investor is anxious, “did Caitlin Lengthy simply trace at a conspiracy on the Federal Reserve? Doesn’t she know that this isn’t allowed even when she backs it up with details?” The particular person behind this account was the primary to publish the Caitlin Lengthy video.
Did @CaitlinLong_ simply trace at a conspiracy on the Federal Reserve? Would not she know that this isn’t allowed even when she backs it up with details? 👀👀👀👀👀👀👀👀👀👀👀👀👀👀👀👀👀👀 pic.twitter.com/A6Kvy37qHW
— Digital Asset Investor (@digitalassetbuy) October 11, 2022
And that’s the story of the BNY Mellon/ Caitlin Lengthy controversy.
Featured Picture: Caitlin Lengthy screenshot from this video | Charts by TradingView
