Pro XRP Lawyer John Deaton Shows Interest in Custodia Bank vs. Federal Reserve Legal Battle
John Deaton, a prominent lawyer advocating for XRP, has expressed a keen interest in the ongoing legal battle between Custodia Bank and the Federal Reserve. In an interview with Catlin Long, both lawyers criticized the US regulator’s role in suppressing the crypto industry. Deaton believes that this case may hold even more weight than the high-profile XRP lawsuit and has made it his top priority after the XRP case.
What Has Happened so Far?
Custodia Bank, founded by Bitcoin advocate Caitlin Long, applied for a Federal Reserve master account in October 2020. This account would grant access to the Fedwire network, which is the Federal Reserve’s extensive payment system. However, their application was rejected in January 2023 due to concerns about the bank’s involvement in crypto activities. As a result, Custodia Bank filed a legal action against the Federal Reserve for what they consider an “unlawful delay” in considering their application.
Deaton Analyzes Custodia’s Case
Deaton analyzed the issues surrounding entry and exit points for cryptocurrencies by established financial institutions during a conference. He highlighted how 5,000 companies were “de-banked” within seven days, raising concerns about regulatory barriers. Custodia Bank’s battle for access to a master account is seen as a regulatory turning point by Deaton. He believes that this case exposes regulatory bodies’ failure to fulfill their legal responsibilities and could potentially lead to changes in Federal Reserve conduct.
A Chilling Message to Entrepreneurs
Deaton emphasized that the outcome of Custodia Bank vs. Federal Reserve could have significant implications for current market sentiments. Denying Custodia Bank a master account could hinder the entry of large institutions into the crypto market, stifling innovation and competition. This highlights the importance of such legal battles and their impact on the crypto industry. Deaton sees Custodia Bank’s success in court as setting a precedent for other crypto-related litigations involving Ripple, Coinbase, and Binance.
Hot Take: The Potential Ripple Effects of Custodia Bank vs. Federal Reserve
The ongoing legal battle between Custodia Bank and the Federal Reserve has caught the attention of Pro XRP lawyer John Deaton. He believes that this case holds significant weight and may have even more impact than the high-profile XRP lawsuit. The outcome of this case could potentially lead to changes in Federal Reserve conduct and regulatory practices, shedding light on regulatory bodies falling short of their legal responsibilities. If Custodia Bank succeeds in court, it could set a precedent for future claims in the crypto space and have far-reaching consequences for the industry as a whole.
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