{"id":10516,"date":"2022-10-12T07:49:13","date_gmt":"2022-10-12T07:49:13","guid":{"rendered":"https:\/\/coingrafter.com\/index.php\/2022\/10\/12\/bny-mellon-offers-crypto-custody-custodia-banks-caitlin-long-blasts-the-fed\/"},"modified":"2022-10-12T07:49:14","modified_gmt":"2022-10-12T07:49:14","slug":"bny-mellon-offers-crypto-custody-custodia-banks-caitlin-long-blasts-the-fed","status":"publish","type":"post","link":"https:\/\/coingrafter.com\/index.php\/2022\/10\/12\/bny-mellon-offers-crypto-custody-custodia-banks-caitlin-long-blasts-the-fed\/","title":{"rendered":"BNY Mellon Offers Crypto Custody & Custodia Bank\u2019s Caitlin Long Blasts The Fed"},"content":{"rendered":"

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Yeah, yeah, the BNY Mellon entered the crypto custody enterprise. The actual story right here is Custodia Bank\u2019s Caitlin Long\u2019s 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 therapy to BNY Mellon. \u201cWe\u2019ve been waiting for two and a half years to do that,\u201d Caitlin Long stated referring to Custodia Bank and bitcoin custody providers.\u00a0<\/span><\/p>\n

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Watch what they don’t what they are saying. #Bitcoin<\/a> pic.twitter.com\/WV2YtXhCkX<\/a><\/p>\n

\u2014 Magoo PhD (@HodlMagoo) October 11, 2022<\/a><\/p>\n<\/blockquote>\n

She\u2019s an expert, however it\u2019s apparent that Caitlin Long is making an effort to carry all of it in. She pronounces that the BNY Melon \u201chas officially now entered bitcoin custody\u201d and poses the query of \u201cwhether crypto truly is risky within the traditional banking system.\u201d You see, BNY Mellon is a \u201cbank holding company supervised by the Federal Reserve,\u201d so that they needed to approve of this. For their half, Custodia Bank is an entity that\u2019s suing the Federal Reserve<\/a> as a result of they received\u2019t enable them to offer that very same service.\u00a0<\/span><\/p>\n

Long finishes her quick however highly effective speech by threatening the Fed, \u201cyou will see a filling from my company in that lawsuit pertaining to the announcement this morning.\u201d The BNY Mellon announcement, that’s.<\/span><\/p>\n

BNY Mellon And Crypto, What Do We Know?<\/span><\/h2>\n

When mainstream media studies on bitcoin and crypto, it\u2019s principally doom and gloom. When <\/span>Reuters reports<\/span><\/a> about BNY Mellon stepping into the crypto custody enterprise, it\u2019s all about \u201ctapping into the popularity of bitcoins and ethers\u201d and \u201ctrading in cryptocurrencies has skyrocketed worldwide.\u201d And we\u2019re not complaining. With respect, the information company informs that \u201cthe 238-year-old bank won the approval of New York\u2019s financial regulator earlier this fall.\u201d<\/span><\/p>\n

In the article, we additionally study that BNY Mellon \u201cformed a unit in 2021 to develop solutions for digital asset technology.\u201d Apparently, they’ve massive plans:<\/span><\/p>\n

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\u201cCrypto is really just the \u201ctip of the spear\u201d, however tokenized belongings maintain loads of promise regardless of being the least developed, stated Michael Demissie, head of digital belongings and superior options at BNY Mellon, including {that a} latest financial institution research confirmed over 90% of institutional traders have been trying to spend money on the section.\u201d<\/span><\/p>\n<\/blockquote>\n

So, the place is the \u201ccrypto is risky within the traditional banking system\u201d perspective right here? Is the crypto holding enterprise any completely different simply because BNY Mellon is concerned?<\/span><\/p>\n

\"BTCUSD<\/p>\n

BTC value chart for 10\/12\/2022 on Cexio | Source: BTC\/USD on TradingView.com<\/a><\/pre>\n
What Did The Fed Say About Crypto Recently?<\/span><\/h2>\n
In her heartfelt speech, Caitlin Long talked about that the Federal Reserve just lately stated that \u201ccrypto is risky within the traditional banking system.\u201d She refers back to the report titled \u201c<\/span>The Financial Stability Implications of Digital Assets<\/span><\/a>,\u201d revealed by the Federal Reserve Bank of New York. It\u2019s a hilarious learn, contemplating that a number of days later they approved BNY Mellon to offer crypto holding providers. For instance, within the intro the Fed says:<\/span><\/p>\n
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\u201cAs the digital asset ecosystem grows, becomes more interconnected with the traditional financial system, and mimics products and structures of traditional finance, it creates new potential challenges to financial stability. The digital asset ecosystem replicates many of the same types of market failures and vulnerabilities that arise in traditional finance\u2014generally without regulatory safeguards\u2014while also introducing new risks.\u201d<\/span><\/p>\n<\/blockquote>\n
Sounds regarding. Unless BNY Mellon is concerned in some way. In a piece titled \u201cRegulatory Challenges,\u201d the Fed additional elaborates:<\/span><\/p>\n
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\u201cDigital assets do not fit neatly into the U.S. regulatory framework, and opacity, extraterritoriality, and new legal structures create further challenges. Limited or no regulation of key entities contribute to fragilities in the digital asset ecosystem.\u201d<\/span><\/p>\n<\/blockquote>\n
However,\u00a0 it\u2019s high quality if BNY Mellon desires to do it.<\/span><\/p>\n
The Twitterati React To The BNY Mellon Controversy<\/span><\/h2>\n