Banking Bitcoin: Caitlin Long vs. The System
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Welcome to nonconsensus investing. I'm Ram Oluwalia, your host and CIO at Lumida Wealth, where we specialize in the craft of alternative investments. At Lumida, we help guide clients through the intricacies of managing wealth so they don't have to shoulder the burden alone. Through this podcast, we draw back the curtain to reveal the strategies employed by the best in the business for their clients so that you too can invest beyond the ordinary. Good afternoon. It's Thursday, 04:00. Bitcoin hit record high today, and delighted to have Caitlin Long here. Been a long time fan and follower of Cai
It's great to be here. Thank you. Yeah. It's exciting, especially given that you and I did cross paths working with Cross River. How much has changed since then? And so much of what was the opportunity back then and the reason we connected in the first place back in, I think, 2020 or 2021, what the custodian had in our business plan being a bank to that would issue a stable coin and hold our reserves at the Fed. And, obviously, here we are five years later, and it's been stymied stymied, and we just came through a period where regulators tried to kill all of crypto. And now the regulatory peri
Let's talk about the stable coin bill. In your mind, what do you like? What do you not like about it? We'll get then into winners and losers. Yeah.
I just had a really interesting conversation with a traditional bank about what's really going on in the stable coin bill because non banks are being treated equally to banks, and that hasn't happened before. Banks have always been treated as special as other, and now that's not the case in this area. And why what was congress after? It's super simple, and you would understand this. It's all about bringing in new buyers for US treasuries because of the debt problem that The United States has. And the banking system tried to keep everybody else out for years, and and it's too small. It doesn't
That's remarkable. Yeah. Like, treasury secretary Scott Bessen was talking about stable coins, how this could be an incremental source of funding for US treasuries. The American fiscal deficit in part is driving stable coin adoption, necessities of mother, whole invention, it looks like. So who do you see as, like, winners and losers in the category? You've got the mega banks, the JPs, the cities. You got the regional banks. You've got innovative startup banks, such as custodial. You've got Anchorage out there. You've got Palmer Lucky's building a bank. How do you see winners and losers playin
Let's start by saying that Washington DC does pick winners and losers. So the regulators, it's a corrupt system. I know that's a strong word, but it is. And we can talk a little bit about why I'm saying that. I do have good reason for saying that. Have
experience.
Absolutely. Finding out that a senior Fed official told Fed examiners to find something to deny us. Finding out that the Fed pressured our partner banks to debank us, Operation Joke point two point o is very real. We have direct evidence. We can prove it and will when and if the time comes in our pending lawsuit. It was ugly what was happening, but I'll set that aside and say the system is still there. Senator Lummis has said this. The people and the tools that created that situation where winners and losers were chosen are still in place in in many cases. And some of it's been rolled back. So
Yeah. Now these are extraordinary numbers. Do you wanna define Fedwire briefly for the audience?
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