Caitlin Long, CEO of Custodia Bank, challenged Vice President JD Vance’s assertion that Operation Chokepoint 2.0 has ended, emphasizing ongoing pressure on the cryptocurrency sector.
Disagreement with Vance's Statement
In her remarks, Long stated that Vance’s claim regarding the end of Operation Chokepoint 2.0 is an exaggeration. She noted that while Vance likely had good intentions, the reality remains unchanged, as the regulatory tools used to target the crypto industry are still in place. Operation Chokepoint 2.0 describes an informal campaign by U.S. regulators aimed at limiting bank access to digital asset companies.
Influence of Career Officials
Long explained that true power within federal banking agencies lies with career staff who remain in their roles regardless of political appointments. Some high-ranking leaders in these agencies have served for up to 40 years, experiencing multiple changes in political appointees. She emphasized that despite promises from the Trump administration to support cryptocurrency, the actual regulatory mechanisms have not been dismantled or replaced.
Custodia's Banking Solutions Development
Custodia Bank has partnered with Vantage Bank to create tokenized bank deposits that bypass current regulatory restrictions. This collaboration enabled the first cross-border issuance of tokenized bank deposits for DX Express, allowing for swift transfers. Long also highlighted that Custodia is developing a system aimed at creating interoperability between various banks and stablecoin issuers, helping to avoid tax complications and expedite the settlement process.
Caitlin Long underscores the complexity of the current regulatory environment for the crypto industry, asserting that pressure remains despite claims of its conclusion.
