Custodia Bank Reduces Operations Ahead of Cryptocurrency Policy Reforms

user avatar

by Giorgi Kostiuk

2 years ago

Custodia Bank, a crypto-friendly Wyoming bank, plans to scale back its services as it anticipates policy reforms in the space.

Custodia Bank's Operations Reduction

Custodia Bank, founded by Bitcoin advocate Caitlin Long, has decided to reduce its operations in anticipation of a more crypto-friendly regulatory environment. The Cheyenne-based bank aims to cut back activities to preserve capital, a decision made by the board of directors. Additionally, the bank seeks to protect its patents and maintain its 'clean compliance and operating record.'

Challenges with Fed Account Access

The decision follows workforce reductions earlier in the year, with the bank cutting nine of its 36 employees. Custodia is embroiled in a legal battle with the Federal Reserve over access to a master account, which would grant it direct access to Fed payment services.

Federal Reserve Rejection

The Federal Reserve rejected Custodia’s application for a master account, citing the bank's crypto-friendly stance and its status as a state-chartered institution. CEO Caitlin Long expressed gratitude to shareholders for their support in ensuring banking access for the U.S. crypto industry.

Custodia Bank continues to adapt to changing regulatory conditions, scaling back operations while actively defending its interests in the crypto industry.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Hut 8 Wins Bid for Poolin's Texas Datacenter Sites

Hut 8 has successfully bid $140 million for two datacenter sites owned by the bankrupt mining company Poolin.

user avatarLucas Weissmann

Senate Banking Committee Democrats Request Hearing on Prediction Markets

Democratic members of the Senate Banking Committee request a public hearing to examine the growing issue of prediction markets and their regulatory implications.

user avatarFilippo Romano

Crypto Economic Activity Remains Strong Despite Market Downturn

Crypto economic activity has shown resilience despite a significant drop in market capitalization, indicating a shift in market dynamics.

user avatarEmily Carter

Visa's Research Highlights Trust as a Barrier to Stablecoin Adoption

Visa's research highlights that trust and fraud protection are essential for stablecoin adoption, with 36% of US respondents considering their use, especially with bank-level protections.

user avatarTomas Novak

Cardano's Onchain Governance Approves New Treasury Allocations

Cardano's governance system has approved a new round of treasury allocations aimed at infrastructure and ecosystem development.

user avatarKaterina Papadopoulou

Galaxy Invests $100 Million in Onchain Credit Infrastructure

Galaxy has invested $100 million in Sky Protocol's yield-bearing sUSDS, integrating it into its corporate treasury and allowing it as collateral for institutional trading.

user avatarMaya Lundqvist

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.