Caitlin Long Highlights Regulatory Hurdles and Bank Run Risks Facing Crypto Banks
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Caitlin Long says Custodia Bank faces regulatory challenges as a non-loan-making crypto bank seeking a master account with the Federal Reserve.
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Long believes recent UK rules requiring stablecoin issuers to be banks holding full reserves at the central bank make sense from a risk perspective.
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Long warns there could be bank runs at places like Silvergate and Signature due to the speed of digital asset transactions.
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Custodia Bank launched a new Bitcoin custody product offering segregated accounts rather than omnibus accounts.
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Long privately warned regulators a year ago about risks of bank runs at places like Silvergate and Signature due to potential stablecoin protocol failures.