Thread by Caitlin Long
- Tweet
- Feb 17, 2023
- #Cryptocurrency #Politics
Thread
1/ IT'S TIME FOR ME TO REVEAL A FEW THINGS. I've just published a post "Shame On Washington, DC For Shooting A Messenger Who Warned Of #Crypto Debacle." Link to post is here:
caitlin-long.com/shame-on-washington-dc-for-shooting-a-messenger-who-warned-of-crypto-debacle/
caitlin-long.com/shame-on-washington-dc-for-shooting-a-messenger-who-warned-of-crypto-debacle/
2/ First, the revelations. Today, I’m publicly disclosing for the first time that (a) I handed over evidence to law enforcement of probable crimes committed by a big crypto fraud, starting months before that company imploded and stuck its millions of customers with losses, and...
3/ (b) I warned bank regulators of mounting bank-run risk inside banks serving the crypto industry b4 the bank runs ultimately hit.
How many correctly foresaw the crypto lender implosion, warned regulators of impending bank runs & tried to help law enforcement stop a big fraud?
How many correctly foresaw the crypto lender implosion, warned regulators of impending bank runs & tried to help law enforcement stop a big fraud?
4/ And in return, what happened to @custodiabank? See snapshot below for details👇.
Custodia tried to become federally regulated–the very result bipartisan policymakers claim to want. Yet Custodia has been denied and now disparaged for daring to come through the front door.
Custodia tried to become federally regulated–the very result bipartisan policymakers claim to want. Yet Custodia has been denied and now disparaged for daring to come through the front door.
5/ Fixing corruption in crypto is not a partisan issue. Yet partisans in DC are nonetheless trying to pull in politics. I *reject* that.
It is not partisan to clean up crypto fraud. It’s the right thing to do.
It is not partisan to clean up crypto fraud. It’s the right thing to do.
6/ In the new post, I describe how 2 descendants of Paul Cabot recently contacted me to analogize my work today to Cabot’s work in the 1930s. I am humbled that they would make such a connection, & can only aspire to a fraction of Cabot’s achievements. (Cabot founded State Street)
7/ Here's what Cabot achieved--he cleaned up rampant corruption in the nascent mutual fund industry of the 1930s. He called out the industry's bad actors. In the 1930s, then-President FDR wanted to crush the mutual fund industry. Cabot succeeded in convincing FDR not to do that.
8/ How? He had credibility bc he had called out the bad behavior of his peers, and he was able to get an audience with FDR. Together, they cleaned up the industry & enacted the Investment Company Act of 1940. The rest, as they say, is history.
9/ But, while FDR invited Paul Cabot to the Oval Office to work out how to fix the problem in the 1930s, most of today’s DC policymakers seem intent on killing the high-integrity innovators.
10/ Few people truly understand how to separate the wheat from the chaff in crypto & even fewer are at the table w/ regulators, as I am–though, as of yet, I’ve not been at the table with the decision makers, and wonder whether my warnings were buried in the bowels of bureaucracy.
11/ Paul Cabot came to the table in the 1930s with the credibility to work with FDR to enact the Investment Company Act of 1940. I’m offering to work with policymakers of all stripes to do the same. President Biden needs to do what FDR did–bring the Cabots of today to the table.
12/ More things will come out via @custodiabank this afternoon.
13/ I'll end with this: Internet-native money exists. It won’t be uninvented. Today, U.S. dollars can move across the internet without banks and without permission, settling as fast as the speed of light and at a fraction of the cost of incumbent payment systems.
14/ This tech will steadily disintermediate banks bc anyone w/ an internet connection can run the code & use US dollars w/o banks. DC's misguided crackdown will only push risks into shadows, leaving regulators to play whack-a-mole as risks continuously pop up in unexpected places
15/ Despite recent attacks, I remain optimistic regulators will realize that antidotes exist to the crypto scams seeping into the system.
16/ Thank you to the Cabots who reached out to me (wow, Paul Cabot had quite a story, covered in this book: www.amazon.com/Passion-Reality-Extraordinary-Investing-Publishing/dp/0231167466).
Thank you also to the many level-headed people who have expressed support for @custodiabank. This is far from over & I appreciate all of you!🙏
Thank you also to the many level-headed people who have expressed support for @custodiabank. This is far from over & I appreciate all of you!🙏
17/ OOPS -- wrong screenshot for tweet #4 -- here's the correct one. Few seem to be aware of the degree of the coordinated DC attack on @custodiabank, involving the White House, Fed Board of Governors, KCFed and Sen Durbin. Again, I *reject* it: 
