It's the banks vs crypto industry and crypto is winning, says Custodia Bank CEO Caitlin Long

Regulatory Landscape & Legislation - The passage of stablecoin legislation faces headwinds due to infighting between special interest groups, specifically banks versus the crypto industry [1] - The first procedural vote on the stablecoin bill failed in the Senate, echoing a similar outcome in the House [2] - The government's underlying motivation for considering crypto is to address the US's significant fiscal deficits by creating new markets for US Treasury purchasers [3] Stablecoins & Banking - Custodia applied for a patent on bank-issued stablecoins in 2020 and was granted it in 2022, anticipating potential patent infringements from big banks entering the market [5] - The stablecoin bill primarily applies to non-banks, raising the question of whether the Federal Reserve will allow banks to tokenize traditional bank deposits [6] - Banks, particularly JP Morgan and Wells Fargo, originate over half of ACH (Automated Clearing House) volume in the United States [7] - The industry anticipates that much of the ACH payments volume will be disintermediated by stablecoin technology, whether originated by banks or non-banks [7] Market Dynamics & Competition - The crypto industry has been winning against banks in the stablecoin regulation discussions [2] - Big bank CEOs are expressing interest in entering the stablecoin market [5]