Custodia Bank Case More Important Than Ripple Lawsuit: XRP Lawyer
XRP News: U.S. Securities and Exchange Commission Vs Ripple Labs lawsuit is seen as a legal dispute which will lead the cryptocurrency industry to regulatory clarity. However, XRP holders’ lawyer suggests that now the Custodia Bank case holds the key for the digital asset market.
Also Read: Binance’s CZ Addresses Crypto Crash As Long Liquidation Breaches $343 Million
Custodia Case Crucial For Crypto Industry
In the latest U.S. district court ruling, Judge denied the Federal Reserve’s motion to dismiss a lawsuit filed by the Custodia bank. However, the court rejected the bank’s request to compel the Fed to grant its master account and membership. Custodia Bank can now pursue its claims through normal channels.
Attorney John Deaton, Amicus curiae in the XRP lawsuit stated that the Custodia case has arguably become the important case despite Ripple and Coinbase’s pending cases. Highlighting Chokepoint 2.0 with the failure of multiple banks like Silicon Valley Bank, Signature Bank, and other banks, he stated that crypto firms always need banking for on and off ramps. Read More XRP News Here…
He mentioned that the Custodia Bank holds a very revolutionary idea of not engaging in fractional banking maintaining funds in reserve. The attorney stated that when you have 100% reserves, a bank run becomes a non issue. This is because then there would be no panic about not getting funds or assets out.
Also Read: XRP Lawsuit Verdict Might Prove Crucial For Coinbase, Binance: Attorney
Deaton stated that the Federal Reserve doesn’t like the revolutionary concepts. He mentioned that the Fed is ignoring its statutory mandate by denying the Custodia Bank a charter. However, the recent court order will allow the Custodia Bank to move ahead with discovery.
Crypto industry finally received a order in its favor amid the recent crackdown led by the US SEC.
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