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Highlights
- Cardano founder Charles Hoskinson slammed the US Federal Reserve amid the latest controversy.
- Custodia Bank CEO Caitlin Long fumed as the US Fed allegedly continued discriminating against banks.
- The issue was brought to light by Fox Journalist Eleanor Terrett, who also spotlighted a common factor in the discriminatory pattern.
Charles Hoskinson, the founder of Cardano (ADA), has openly accused the US Federal Reserve of “corruption.” His statement came in response the US Fed’s latest move wherein it continued discriminating against banking institutions. Furthermore, the matter became serious when Custodia Bank CEO Caitlin Long stepped into the scene.
Hoskinson Accuses US Federal Reserve
Moreover, Hoskinson urged voters to “vote crypto” in the 2024 elections. In a post on X, he wrote, “Remember in 2024 to vote crypto, or else you get more of this corruption.” Hoskinson’s outcry came in response to a fiery post by Long, who has been vocal about the Federal Reserve’s allegedly discriminatory practices.
Furthermore, Long’s criticism centered on what she perceives as preferential treatment given by the Federal Reserve to certain banks with connections to former Fed officials. Long wrote, “I AM SPEECHLESS. Is this what it appears to be—special treatment by the Fed for another former insider, just weeks after the Fed’s Inspector General ‘suspended’ its investigation into the Fed’s master account practices?” This controversy was fueled further by recent revelations from Fox journalist Eleanor Terrett.
Terrett disclosed that Connecticut-based fintech bank Numisma, formerly known as Currency Reserve, has received conditional approval for access to a Federal Reserve master account. This is notable because Numisma, like Custodia Bank, is a non-FDIC-insured, non-federally regulated bank. However, Numisma’s approval comes despite the Fed’s previous stance that such banks are “inherently unsafe and unsound.”
Additionally, Terrett highlighted a crucial detail that has added fuel to the allegations. The journalist added, “Both banks that received approval have been associated with former Fed officials. One of Numisma’s founders is former Fed Vice Chairman Randy Quarles. The other bank, Reserve Trust, received a master account in 2018 and also happened to have former Fed Vice Chair Sarah Bloom Raskin on its board.” However, the Kansas City Fed later revoked Reserve Trust’s master account in 2022.
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XRP Lawyer John Deaton Joins The Fray
In addition, Long pointed out the apparent double standard. The Custodia Bank CEO stated, “The Fed’s Custodia denial order went into excruciating detail about why these issues are not curable, but suddenly a bank with the same regulatory structure got a pass by the Fed—and an ex-Fed governor is involved?”
Furthermore, John Deaton, a prominent pro-XRP lawyer, has joined the growing chorus of voices accusing the US Federal Reserve of corruption. Following recent allegations by Cardano founder Charles Hoskinson and Custodia Bank CEO Caitlin Long, Deaton took to social media to express his concerns about the integrity of federal regulatory agencies.
Deaton didn’t mince words, stating, “As I’ve said multiple times, we are living through a period of time history books will later describe as: ‘THE CORRUPTION ERA.’ The Federal Reserve is no different than any of the other compromised federal agencies.” Moreover, he emphasized the issue of the “revolving door” between regulatory bodies and the industries they oversee, which he believes fuels corruption.
In addition, he proposed specific legislative measures to combat this problem if he wins the US Senate race. The XRP Lawyer wrote, “I will write a bill preventing a person from leaving their job as a U.S. regulator to go immediately work within the industry they were just in charge of regulating. A 5-year statutory ban sounds about right.”
Deaton illustrated the problem with a vivid example: “A person should not be able to leave the FDA and then immediately go work for Pfizer. One day you’re the Chairman of the SEC, and the following week you’re on the Board of several companies you were just in charge of regulating. It fuels corruption.”
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