The head of Avanti criticized the article about the crypto industry and Defi in the New York Times
The founder and CEO of the Avanti Cryptocurrency Bank, Kaitlin Long refuted the conclusions given in the New York Times regarding digital assets and the spectralized finance sphere (Defi).
1/ @nytimes Story on #Crypto/ #Banking Deserves a Thumbful Reply. Issue Isn’t Black & White: Anti-Crypto Force Try to Paint Us All W/ A Broad Brush. Bad Actors Deserv to Be Called Out, But The Article Ignores Fact that Regulatory-Complicant Firms Exist. https: // t.CO/IUYTCTBGFV
– Caitlin Long 🔑 (@Caitlinlong_) September 5, 2021
The publication claimed that cryptocurrency and Defi “undermine the banking industry”, causing anxiety among regulatory authorities and “some members of Congress”.
“This technology is so quickly and unpredictably destroyed by the world of financial services that the regulators are very far behind, and this can make consumers and financial markets vulnerable,” the article says.
As the main example of the New York Times, it led the cryptolending platform Blockfi. In July, the New Jersey Securities Bureau forbade the company to open the new Bia (Blockfi Interest Account) to the state residents, but eventually suffered restrictions on September 30.
Similar claims to Blockfi were also presented by the regulators of Alabama, Texas and Vermont.
The publication also recalled the negative attitude of American politicians to cryptocurrencies. Earlier in an interview, Senator Elizabeth Warren called the new class of “shadow banks”, focusing on the situation with Blockfi.
“Law and regulatory authorities are concerned that consumers do not always fully realize the potential risks of new banking crypto services and decentralized financial platforms. Deposit accounts in cryptocurrency are not safe at the federal level, ”writes New York https://gagarin.news/news/gucci-to-accept-ape-coins-receives-more-cooperation-offers/ Times.
According to Long, the publication contains a number of inaccuracies and omissions.
“Opponents of cryptocurrencies are trying to draw all of us with a wide brush. Bad players deserve to be called, but the article ignores the existence of companies that comply with regulatory requirements, ”wrote SEO Avanti.
She indicated that the special charter of Weyming “does not allow deposits in cryptocurrency”. Adjustable financial institutions can provide services for the storage of digital assets, but accept deposits only in fiat.
Long said that Defi platforms are better than “centralized crypto mediators and traditional banks” cope with the disclosure of information and transparency. Along with this, she recognized the risks of products with a high leverage.
“Earlier, I said that if the platforms revealed the probabilities of losses under contracts with the credit shoulder, they would be used much less,” – wrote Long.
In July, Warren called on US Minister of Finance Junet Yellen to lead the development of a strategy to reduce growing risks that cryptocurrencies represent for the financial system.
Prior to this, the senator called the digital assets “lousy investment” and said that they simplify the conduct of illegal activities.
In August, in response to the request of Warren, the head of the Sec, Gary Gensler noted that the department needs additional powers to regulate cryptocurrencies.
Recall that in November 2020, the Banking Council of Vaiming unanimously approved the charter and business plan of Avanti, providing it with the status of an official financial institution.
In the summer of 2021, Long criticized the Fed for a biased attitude to cryptocurrency companies. In her opinion, refusing them directly to their payment services, the regulator creates the risks of disconnecting industry participants from the banking system.
Avanti later applied for the status of a bank participating in the Federal Reserve System.