In a conversation with Eleanor Terrett from FOX Business, Caitlin Long, the CEO of Custodia Bank, discussed how the court’s ruling against the Federal Reserve is hindering technological advancement in the industry at large.
Caitlin Long on the Federal Reserve Win
To provide some context for the situation, Custodia Bank previously sought oversight from the Federal Reserve in the United States. In their application, they asked for access to a Master Account managed by the Federal Reserve Bank of Kansas City. However, their request was declined by the agency. The purpose of this account would have allowed Custodia Bank to execute inter-bank transfers and utilize essential Fed payment services.
The Federal Reserve disputed that Custodia Bank met the legal prerequisites, denying them access to the payment system. In response, the bank initiated a lawsuit against the Federal Reserve. It was widely believed within the crypto community, including lawyer John E. Deaton, that the outcome would favor the bank. This anticipated victory held significant importance for the crypto sector as a whole, as it could alter the industry’s perception.
During that period, Terrett expressed that Long’s victory in the lawsuit would mark her as the initial woman to challenge the Federal Reserve and emerge triumphant.
Approximately two weeks ago, Judge Scott Skavdahl of Wyoming’s District Court sided with the United States Federal Reserve in the ongoing legal dispute with Custodia Bank. Furthermore, Custodia’s petition for a declaratory judgment was denied, thus bolstering the Federal Reserve’s stance in the case.
In her interview, Caitlin Long suggested that while the current law stands, there may be an opportunity for an appeal as the final decision could come from the Appellate Court. She also expressed concern about the Federal Reserve’s political bias, which she believes is hindering innovation not just in the crypto space but across the tech industry as a whole within the country.
The Plot Against CeFi and DeFi Integration
Regarding the court’s decision in the lawsuit, Long admitted that such legal outcomes can be unpredictable. Long confirmed that Custodia Bank has consistently endeavored to collaborate with the Federal Reserve, participating in numerous meetings. Simultaneously, Terrett is confident that Custodia Bank holds a solid basis for filing an appeal.
Custodia Bank’s groundbreaking initiative to merge traditional banking with decentralized finance is a trailblazing effort in the financial industry, following the lead of other pioneers. This endeavor mirrors the goal of Ripple Labs and its proposed USD-pegged stablecoin for crypto payments.
Several companies have encountered hurdles that hinder their innovative progress. Often, these hindrances manifest as regulatory restrictions and mandates from government entities. Crypto initiatives are increasingly viewing these difficulties as manipulative political tactics.
According to Long’s observation, Senator Elizabeth Warren and other lawmakers are employing a wider strategy to hinder the advancement of digital currencies through legislation. In response, crypto innovators are supporting pro-crypto lawyer John Deaton in his campaign against Sen. Warren for a Massachusetts Senate position at the Capitol.
If Deaton is successful with this new development, it’s anticipated that the cryptocurrency regulatory scene in the country may undergo some transformations.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- USD RUB PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- USD COP PREDICTION
- ZETA PREDICTION. ZETA cryptocurrency
- USD PHP PREDICTION
2024-04-13 23:57