- Bill Morgan thinks Caitlin Long is right about certain developments in the crypto industry.
- Morgan believes Long was spot on over agencies’ risks in pushing the crypto industry into litigation.
- Long thinks such risks could result in jurisdictional gray areas being the subject of legal decisions.
Bill Morgan, a lawyer and digital assets enthusiast, thinks Caitlin Long, the CEO of Custodia Bank, is right about certain developments in the crypto industry. Morgan believes Long was spot on on the risks posed by agencies pushing the crypto industry into litigation. According to Long, such risks could result in jurisdictional gray areas being the subject of legal decisions that hamper executive government agency jurisdiction overreach.
In a recent post on X (formerly Twitter), Morgan referred to Long’s statement during her interaction with John E. Deaton, founder and host of CryptoLaw.us. During the interactive session, Long explained that Custodia Bank specializes in particular risks of the digital assets customer base.
Long explained that her bank knew there was heightened custodian risk for traditional banks serving the digital assets industry. She noted that the risks resulted from fast settling and the potential high velocity of digital assets. The Custodia Bank executive noted that each Tether was changing hands three times a day at some point. She considers that to be high compared to the monetary velocity of the US dollar, which is 1.2 times a year.
According to Long, Custodia Bank is adopting a vastly different liquidity risk model that can satisfy the digital assets class. She criticized the Biden administration’s approach toward the crypto industry, leading to multiple federal agencies and court districts facing “bet the farm” type litigation that could permanently change their jurisdictions by the Federal court system, should they lose their case.
Morgan thinks some agencies could be at the receiving end of the stick when the litigation concluded. He expressed disappointment at how the US Securities and Exchange Commission (SEC) is handling the case against Ripple. Morgan said he once thought avoiding this risk of an adverse judgment that limited the SEC’s jurisdiction over crypto could be a reason the SEC would settle with Ripple. Instead, the SEC pushed further by seeking an interlocutory appeal.
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