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Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated - Ep. 687
1 hour 11 minutes Posted Aug 13, 2024 at 4:00 pm.
Intro
What Custodia Bank is and how it got started in Wyoming
How Custodia got into a fight with the Fed to get its master account
How the dual banking system works in the U.S. and the differences between Custodia and traditional banks
Why Custodia filed a lawsuit against its own regulator
Why the Fed denied Custodia its applications and Caitlin’s response to the criticisms
The political coordination meant to “intimidate” Custodia, according to Caitlin
The amicus briefs that were filed in favor of Custodia
Caitlin’s reaction to the Fed’s enforcement action against Customers Bank
Why Caitlin says that it’s “abusive and corporatist” that the SEC is granting exceptions to big banks
Why so few banks are owned by women and whether this played a role in Custodia’s denial
The next steps in Custodia’s case and whether a stablecoin is viable for them
Whether the elections are going to impact the case
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Show notes
Custodia, established as a special purpose depository institution in Wyoming, aimed to offer secure banking services for the crypto sector. Despite meeting state requirements and taking extra steps to demonstrate its commitment to safety, Custodia’s application for a Fed master account was met with delays and ultimately denied in an unprecedented 86-page report.In this episode, Caitlin and Michelle explain why they believe the Fed’s rejection was politically motivated, how this relates to Operation Choke Point 2.0, the appallingly small number of American banks owned by women, where they are in their lawsuit against the Fed, and what this case means for the future of crypto banking in the U.S.Show highlights:
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Guests:
Caitlin Long, Founder & CEO of Custodia Bank
Previous appearances on Unchained:
Why Caitlin Long and Meltem Demirors Are Worried About Crypto’s Future in the US
Caitlin Long: Why Avanti Will Be a New Kind of Crypto Bank
Michelle Kallen, Partner at Jenner & Block
LinksTimeline
PerkinsCoie: Federal Reserve Issues Final Guidelines for Master Account Access
CoinDesk: Crypto Bank Custodia Sues Federal Reserve
Davis Polk: Crypto bank sues Federal Reserve over delay in master account application
Fed’s 86-page report of its denial of Custodia’s membership 
Custodia’s response to the Fed report
Custodia’s amended filing
Judge Scott Skavdahl’s order to dismiss
Davis Polk: District courts refuse to order Federal Reserve to grant master accounts to Custodia
Appeal
Custodia’s appeal notice
Custodia’s appeal filing
Amicus briefs for the appeal
Bitcoin Magazine: The Federal Reserve, Custodia Bank, And The Battle For Sovereignty
Paul Clement on behalf of the Digital Chamber and Global Blockchain Business Council (GBBC)
Don Verrilli for Blockchain Association
State of Wyoming
Americans for Prosperity Foundation
Members of the United States Senate Banking Committee and House Financial Services Committee
Former Sen. Patrick Toomey
Customers Bank:CoinGeek: ‘Crypto’-friendly Customers Bank hit with Fed Reserve enforcement action
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