Washington Turns Hostile on Crypto

A year ago, crypto successfully scraped and scrapped to get a foot in the door in Washington. But in the wake of crypto's winter, and FTX's spectacular collapse, that door has now slammed shut. From a report: Gaining legitimacy in Washington has been an essential part of the industry's push into the mainstream. But a series of recent announcements from the Biden administration suggest there's a crackdown ahead. The vibes from the White House and federal agencies have been somber at best for anyone trying to run a cryptocurrency business. Over the last two weeks, government officials repeatedly gave crypto the cold shoulder. First, a crypto-friendly bank was firmly denied its request to join the Federal Reserve system. Custodia Bank, which believed it did everything by the book, was blindsided.On a larger scale, the Fed's rejection of Custodia was a major blow for an industry that's always envisioned disrupting traditional finance. To do that, it needs direct access to the systems that underpin it, including the Fed's payment network.

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