TechFlow news, on November 30, according to DL News, David Marcus, former head of Meta's (formerly Facebook) stablecoin project Diem, revealed the inside story behind the project's failure. Marcus stated that in 2021, the project had fully met regulatory requirements and was preparing for a limited launch, but U.S. Treasury Secretary Janet Yellen told Federal Reserve Chair Jerome Powell that approving the project would be "political suicide." Subsequently, the Federal Reserve pressured banks into terminating their partnerships with the project.
Custodia Bank CEO Caitlin Long responded, saying her company faced similar suppression. Previous reports indicated that a16z founder Marc Andreessen disclosed on a podcast that over 30 tech founders have experienced "debanking" in the past four years.
