Custodia Bank CEO Criticizes Federal Reserves Innovation Limitations
- Custodia Bank was said by the Federal Reserve to have failed to comply with the law.
- The case against Custodia Bank was decided in favor of the U.S Federal Reserve.
Custodia Bank CEO Caitlin Long discussed the ways in which the courts ruling in the case involving the Federal Reserve is limiting technological innovation in a conversation with FOX Business correspondent Eleanor Terrett.
The Custodia Bank has previously sought oversight from the Federal Reserve System of the United States. The crypto-friendly bank was turned down for a Master Account by the Kansas City Fed. It was expected that Custodia Bank would be authorized to handle interbank transfers and other important Fed payment services using this master account.
Access Denied to the Payment System
Nonetheless, Custodia Bank was said by the Federal Reserve to have failed to comply with the law. The financial institution went to court against the Federal Reserve because it was denied access to the payment system.
Everyone in the crypto space was hoping for this expected win so much because it would change the industrys reputation. Terrett said at the time that Long would become the first woman to successfully sue the Federal Reserve if she were to win the case.
The case against Custodia Bank was decided in favor of the U.S Federal Reserve by Wyoming District Judge Scott Skavdahl about two weeks ago. The Federal Reserves stance was further strengthened when Custodias motion for a declaratory judgment was denied.
The law is the law, according to Caitlin Long, although she did hint at an appeal by saying that the Appellate Court may make the ultimate decision. Long mentioned the Federal Reserves political bias in her statement on the case; this bias is preventing advancements in the countrys IT ecosystem as a whole, not just in cryptocurrency.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
