Caitlin Long Lauds The Fed's Crypto Shift, But There's A Twist
Caitlin Long, CEO of Custodia Bank, praised the Federal Reserve's decision to end its "novel activities" supervision program, indicating a shift in U.S. oversight of digital assets. Speaking at the Wyoming Blockchain Symposium, she noted that while the Fed's approach is changing, many applications for Fed clearing accounts remain pending. Long highlighted Custodia's role in stablecoins and its partnership with Vantage Bank, while expressing concerns about regulatory uncertainties surrounding the recently signed Genius Act. She anticipates the Clarity Act will pass this year, signaling further regulatory evolution for crypto.
The Federal Reserve's recent decision to end its "novel activities" supervision program marks a turning point in U.S. oversight of digital assets, according to Caitlin Long, founder and CEO of Custodia Bank.
What Happened: Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Long said the change underscores "a thawing but not yet melted" shift by the Fed toward crypto.
"This year we have two Fed governors, Mickey Bowman and Chris Waller, attending and speaking. Last year, no one from the Fed was allowed," Long told CNBC in an interview at the event. "Personnel is policy. There's no question things are thawing, but they're not completely melted yet at the Fed."
The Fed announced Friday that crypto-related bank activities will now fall under standard supervisory processes rather than the special framework established under its "novel activities" supervision program.
Long noted that while the move is significant, Custodia and other applicants remain without Fed clearing accounts, with more than 40 applications pending.
Stablecoins were another focal point of the symposium, following the signing of the Genius Act into law last month, establishing the first federal framework for stablecoins.
Long emphasized Custodia's early role in this space, pointing to the bank's patent for bank-issued stablecoins approved in 2020 and its ongoing partnership with Vantage Bank.
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"We issued the first bank-issued stablecoin back in March with regulators' approval," Long said. "We don't act unless regulators have approved. It's different from the rest of the industry that asked for forgiveness, not permission."
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She said Custodia is preparing announcements with Vantage Bank to bring tokenized bank deposits into wider use, offering licenses under its stablecoin patent to other banks.
Still, uncertainties remain around how regulators will implement the Genius Act, including compliance requirements and whether banks will face different capital charges for holding stablecoins compared to non-bank issuers.
"I don't believe regulators will have a two-tier system," Long added, stressing that smaller community banks could benefit from reduced compliance friction if rules are harmonized.
The broader regulatory environment is also in flux, with the Clarity Act, focused on crypto exchanges and market rules, moving from the House to the Senate. Long expects the measure to become law this year, with President Trump having signaled his support.
What’s Next: At the Wyoming Blockchain Symposium, held in parallel with the Fed's own Jackson Hole Economic Policy Symposium, the presence of Fed governors and regulators marks a striking reversal from last year's absence.
Long framed the shift as an important sign for banks, fintechs, and stablecoin issuers navigating the evolving regulatory landscape.
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