Custodia Bank vs. Feds: Legal Battle May Be as Impactful as XRP Case
• Custodia Bank is suing the Federal Reserve System for rejecting its application to become a member.
• XRP advocate John Deaton believes this case against the Fed is just as important as the Ripple-XRP case.
• Wyoming Federal Judge denied the Federal Reserve’s bid to dismiss Custodia’s lawsuit against it.
Custodia Bank vs. Feds: Legal Brawl
Wyoming-based Custodia Bank has launched three lawsuits against the US Federal Reserve in three separate circuits after its application to become a member of the Federal Reserve System was rejected earlier this year by the Kansas City Fed. XRP advocate John Deaton believes that this court case could end up having an effect that is just as important (if not more) than Ripple’s XRP case, and Wyoming Federal Judge has already denied the Federal Reserve’s bid to dismiss Custodia’s lawsuit against it.
Background on Custodia Bank
Custodia Bank was founded by Morgan Stanley veteran Caitlin Long in 2020 and offers a bridge between digital assets and the US dollar system. The platform has accused the Federal Reserve of unlawfully delaying its application for a so-called master account, which happens to be an important component necessary for effective participation in the US financial ecosystem.
Ripple’s XRP Case
The Ripple-XRP legal battle continues with no clear winner yet, but it remains one of the most closely watched events in cryptocurrency markets right now due to its potential implications for crypto regulation and market structure if Ripple were to win or lose its case against the SEC over whether or not XRP should be considered an unregistered security under U.S law — something which would either legitimize or invalidate much of what we currently know about how cryptocurrencies are treated from a legal standpoint here in America.
Important Win For Custodia
After moving to court, Custodia notched a key win when Wyoming Federal Judge denied the Federal Reserve’s bid to dismiss its lawsuit against it – signaling at least partial success for their battle with one of America’s most powerful institutions and setting up what could be an important precedent for other companies seeking similar access into our financial systems without overly restrictive regulations getting in their way.
It looks like both cases will have significant ramifications no matter who comes out on top – but only time will tell which side ends up eventually prevailing in these high stakes battles between major players within our nation’s financial systems and regulatory agencies alike!