Cryptocurrency bank Custodia Bank reduces its operations to preserve capital in response to new government cryptocurrency policy reforms

ChainCatcher news, according to CrowdFund Insider, the board of the crypto bank Custodia Bank voted this week to further scale back operations and preserve capital in response to the significant upcoming crypto policy reforms from the new Washington government. The bank stated that this move will preserve its core businesses, including its banking license, API-based real-time payments, Bitcoin custody platform, and patented bank-issued stablecoin.

Custodia Bank founder and CEO Caitlin Long expressed satisfaction with the team, customer service, and team resilience, despite facing multiple unwarranted delistings from banks.

In August of this year, influenced by the Biden administration's crypto asset regulatory policies, Custodia Bank laid off 9 out of 36 employees to conserve resources in response to legal actions with the Federal Reserve. The bank is seeking to obtain master account access, which would allow it to directly access the Federal Reserve's liquidity tools and avoid additional costs incurred through other institutions.