What does the Custodia Bank ruling mean for crypto banking?
The ruling from the U.S. Tenth Circuit Court of Appeals against Custodia Bank carries weighty implications for the future of crypto banking. The court, in affirming the Federal Reserve’s denial of Custodia’s master account access, has underscored the Fed’s prerogative to limit payment system entry based on perceived risks tied to digital assets. This decision not only obstructs Custodia’s business model but also raises significant concerns regarding how crypto banks will integrate into the traditional financial framework.
Custodia Bank, founded by Caitlin Long, a known advocate for cryptocurrency, sought to pioneer services within the crypto sector. Their offerings included stablecoin projects and custody service for crypto assets….
