Unchained Why Caitlin Long and Meltem Demirors Are Worried About Crypto’s Future in the US - Ep. 470
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Mar 21, 2023 
Caitlin Long, the founder and CEO of Custodia Bank, and Meltem Demirors, Chief Strategy Officer at CoinShares, delve into the alarming state of crypto in the U.S. They discuss the perceived attacks on crypto-friendly banks like Signature and the chilling implications of Operation Choke Point 2.0. Caitlin highlights how recent regulatory actions resemble historical precedents, while Meltem emphasizes the unique position of stablecoins. Together, they dissect the future of banking and crypto amidst looming regulatory challenges and evolving market dynamics.
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Crypto Banking Challenges
- Crypto banking has always been challenging due to the incompatibility between crypto and traditional dollar settlement times.
- Real-time dollar settlement is crucial for crypto market growth, as seen with SEN and Signet.
Operation Choke Point 2.0
- Operation Choke Point 2.0 targets the crypto industry through regulatory pressure and debanking.
- Evidence suggests a coordinated effort to suppress the crypto industry by regulators.
Silvergate's Demise
- Silvergate Bank's failure was primarily due to a duration mismatch between assets and liabilities, worsened by a bank run.
- They held long-term assets while facing volatile crypto deposits, leading to losses when forced to sell assets.