ChainCatcher news, according to Fox Business, the Biden administration's regulatory crackdown on cryptocurrency has led to a significant restructuring at a small but high-profile crypto bank. The media learned that Custodia Bank, a Wyoming financial institution providing banking services to cryptocurrency companies, notified employees on Thursday morning that it would lay off 9 out of 36 employees in order to preserve capital amid its court battle with the U.S. central bank.The layoffs come as Custodia is embroiled in a legal dispute with the Federal Reserve, as the company is vying for a so-called master account that would allow state-chartered institutions to access the Fed's liquidity facilities, including payment services. Without a master account, banks are forced to operate through other institutions that hold a master account, which typically incurs high costs.

ChainCatcher news, according to Fox Business reporter Eleanor Terrett, former U.S. Attorney General Paul Clement, who represented the Loper Bright side in the Supreme Court's Chevron case, has just submitted an amicus brief on behalf of the cryptocurrency industry against the Federal Reserve in the appeal case involving Custodia Bank (crypto-friendly regret).Clement, after recently successfully overturning the Chevron deference principle, raised a question in the submitted amicus brief regarding whether the Federal Reserve violated the Second Article of the U.S. Constitution by allowing the Federal Reserve Chair to make official decisions. This poses a significant challenge for Custodia, as it seeks court intervention to limit the excessive power of the U.S. central bank (which recently denied Custodia's request for access to a master account).Clement stated, "In short, the district court has granted the Federal Reserve Bank Chair such significant and almost unrestricted discretion, which raises serious constitutional questions about whether the Second Article is being violated." Clement essentially questioned whether the structure of the Federal Reserve is constitutional, which makes the significance of this case far beyond just the issue of Custodia Bank.

ChainCatcher News, the American cryptocurrency lobbying group Blockchain Association has submitted an amicus brief to the U.S. Court of Appeals for the Tenth Circuit in support of Custodia Bank's lawsuit against the Federal Reserve.The Chief Legal Officer of the Blockchain Association stated, "The Federal Reserve claims that digital assets pose safety and soundness issues, which protects large existing banks and makes it harder for industry participants to find banking partners. This puts customers in a bind. And Custodia has become a victim of this scheme.Most importantly, the Federal Reserve's master account provides a safety net for banks and their customers. Lack of access to this system harms the interests of millions of law-abiding Americans participating in the digital asset economy.We hope the Tenth Circuit will make the right decision."

ChainCatcher news, Custodia Bank CEO predicts that Wall Street will financialize Bitcoin, and after Bitcoin is adopted by Wall Street, there will be the largest short squeeze in human history. Before the U.S. presidential election, the Bitcoin market will experience a "roaring" bull market, and although prices are currently down, the fundamentals still look strong.She added that every time Bitcoin undergoes a halving, the BTC price always drops because miners are unable to sustain their operations and liquidate their held BTC. She believes that the Bitcoin price will rise significantly in October.

ChainCatcher news, Custodia Bank lost the lawsuit against the Federal Reserve's rejection of its master account application. The judge ruled that the Federal Reserve has the authority to decide whether to grant a master account. Wyoming District Judge Scott Skavdahl stated that federal law does not require the national central bank to allow every eligible depository institution access to its master account system, and the evidence provided did not indicate that the Federal Reserve Board influenced a regional branch of the Federal Reserve in rejecting its account application.

ChainCatcher news, Fox reporter Eleanor Terrett posted on social media, "This week the judge may rule on the case of digital asset bank Custodia Bank against the Federal Reserve, as two trials will begin on April 1. The outcome of this case could be landmark for the crypto industry and state banks."Previously, a federal judge in Wyoming rejected the Federal Reserve's request to dismiss the lawsuit filed by digital asset bank Custodia Bank against it. Custodia had previously applied for a master account with the Kansas City Federal Reserve Bank but was repeatedly denied by the Federal Reserve. Currently, authorized by Wyoming state law, Custodia operates as a Special Purpose Depository Institution (SPDI), providing cryptocurrency and traditional banking services.

ChainCatcher news, the crypto-friendly bank Custodia Bank announced on X that it has received approval from the Wyoming banking department, and Custodia's Bitcoin custody platform has recently launched.This one-stop Bitcoin custody and USD integrated service (not FDIC insured) platform is aimed at businesses, including trustees, investment advisors, fund managers, and corporate finance executives.

ChainCatcher news, according to Decrypt, Custodia Bank CEO Caitlin Long stated during a panel discussion at the Miami Bitcoin Conference that the bank issued a 60-day advance notice in April, and it will launch Bitcoin custody services for its clients.Custodia Bank, formerly known as Avanti, has been providing a full suite of financial services to clients with digital assets since 2020. As a Special Purpose Depository Institution (SPDI), the bank is also one of the first institutions registered under Wyoming's cryptocurrency-friendly laws. (source link)