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:

00:00 Intro
01:52 What Custodia Bank is and how it got started in Wyoming
06:04 How Custodia got into a fight with the Fed to get its master account
09:58 How the dual banking system works in the U.S. and the differences between Custodia and traditional banks
18:15 Why Custodia filed a lawsuit against its own regulator
24:33 Why the Fed denied Custodia its applications and Caitlin’s response to the criticisms
29:57 The political coordination meant to “intimidate” Custodia, according to Caitlin
42:43 The amicus briefs that were filed in favor of Custodia
48:48 Caitlin’s reaction to the Fed’s enforcement action against Customers Bank
53:35 Why Caitlin says that it’s “abusive and corporatist” that the SEC is granting exceptions to big banks
56:03 Why so few banks are owned by women and whether this played a role in Custodia’s denial
59:25 The next steps in Custodia’s case and whether a stablecoin is viable for them
1:05:21 Whether the elections are going to impact the case

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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Guests:

Links

Timeline

Appeal

Custodia’s appeal notice
Custodia’s appeal filing

Amicus briefs for the appeal

Customers Bank:

CoinGeek: ‘Crypto’-friendly Customers Bank hit with Fed Reserve enforcement action

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Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated - Ep. 687 01:11:52 Share

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Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated - Ep. 687