Zinger Key Points
- "There's a lot of grift" in the crypto sector, Caitlin Long says.
- The U.S. needs to "pull its head out of the sand on the regulatory front" so fraudsters don't gain any more visibility, she adds.
Considering Custodia Bank CEO Caitlin Long ranks among the top innovators within the financial sector for 2023, it seemed fitting to hear her thoughts on what to expect in 2024.
"If the past is prologue, we'll have a big bull market next year," she told Benzinga at the recent Fintech Deal Day & Awards in New York City.
See video below.
Earlier this year, Custodia Bank officially launched its Bitcoin BTC/USD custody service for institutional entities.
While, it's only available in select states, Long said, it's a sign that she and her team are one step ahead in preparing for the inevitable bull market come 2024, especially when the "Bitcoin halving" takes place in April.
Warnings For The Crypto Sector: "There's a lot of grift," Long said of the emerging asset class. She equated it to the early days of the Internet when bad actors went bust.
"The markets were vicious in purging a lot of the fraud in the dotcom era," she recalled.
In 2023, the scenario was similar: FTX founder Sam Bankman-Fried was found guilty of all criminal fraud charges and Binance founder Changpeng Zhao admitted to breaching the Bank Secrecy Act (he faces a sentencing on Feb. 23, 2024).
"What I hope is that the U.S. will pull its head out of the sand on the regulatory front," Long said. "That keeps 'the FTXs' outright fraudsters from gaining the share and visibility that they did."
The Long Game: Long's bullish take comes at a time when others in her industry appear bearish or, in the case of JPMorgan Chase CEO Jamie Dimon, "terrified" according to commentators on social media.
With a resume that boasts various leadership roles at big-name banks like Salomon Brothers, Morgan Stanley and Credit Suisse, Long has become a champion of crypto and blockchain technology — even if it meant taking on government officials at the state level.
In 2017, a Wyoming law blocked Long from donating appreciated Bitcoin to endow a scholarship for female engineers at the University of Wyoming.
Long didn't let that stop her. She spearheaded a multi-year initiative to make her home state of Wyoming "an oasis for blockchain companies in the U.S."
Since then, Wyoming enacted 33 pro-blockchain laws and two governors appointed Long to serve on the Wyoming Legislature's Blockchain Task Force/Blockchain Select Committee.
Her efforts culminated in what she now describes as "a new breed of bank... one that's tech-forward, treats customers [with] the respect you deserve."
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Photo: Custodia
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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