Three lawsuits have been filed against the Federal Reserve over its management of Fed master accounts, prompting a reaction from the cryptocurrency community. Caitlin Long, CEO of Custodia Bank, revealed this legal development in a recent tweet, emphasizing the significance of three concurrent lawsuits in different circuits. These lawsuits challenge the Federal Reserve’s control over master accounts, which are crucial for financial institutions, including crypto banks like Custodia Bank.
John E. Deaton, a prominent lawyer advocating for XRP, expressed his concern about the intrusion of federal agencies into the private lives of Americans. He highlighted the unconstitutional expansion of authority by agencies such as the SEC, FBI, EPA, and the Federal Reserve. Deaton stressed the importance of financial freedom and the right to own legal assets without government interference. He also referenced the SEC’s lawsuit against Ripple and its executives, which he saw as an attack on financial freedom.
Deaton further pointed out the regulatory challenges faced by Coinbase and Custodia Bank. Despite initially approving Coinbase’s IPO, the SEC later sued the company, seeking to shut down its business model and effectively advocating for a crypto ban in the U.S. This raises concerns about limiting the choices and freedom of Americans in the cryptocurrency space. Custodia Bank, known for its innovative concept of maintaining 100% reserves and eliminating fractional banking, was also mentioned. The bank was denied a Master Account by the Federal Reserve, leading to a legal battle that survived the government’s attempt to dismiss it.
These lawsuits brought by entities like Ripple, Coinbase, and Custodia Bank are seen as important battles for financial freedom, challenging government regulations. The convergence of multiple lawsuits against the Federal Reserve’s control over master accounts and broader government interference in the financial industry highlights the growing significance of these legal battles. The outcome could have a significant impact on the future of banking, cryptocurrency, and financial freedom in the United States.