Crypto Group Warns Fed Could Use Banking Access to Squeeze Digital Asset Firms
Crypto Group Warns Fed Could Use Banking Access to Squeeze Digital Asset Firms
The Unbanked, a cryptocurrency industry group, has highlighted concerns that the U.S. Federal Reserve might use access to the banking system as a tool to exert pressure on digital asset firms. The group argues that recent actions indicate regulators could potentially restrict banking services to these companies, thus stifling their operations.
Custodia Bank, a digital asset-focused financial institution, has been at the center of this debate. They were denied a "master account" by the Federal Reserve, which is crucial for gaining access to the central banking system. Without such an account, it becomes challenging for these firms to operate effectively and offer competitive services.
The ongoing struggle for access underscores the tension between the traditional banking sector and emerging digital finance companies. Industry proponents argue that restricting banking access hampers innovation and growth in the digital finance sector. They call for clear regulations that ensure fair access while maintaining security and compliance standards.
This article has been published in decrypt.co via Yahoo News.
Crypto Group Warns Fed Could Use Banking Access to Squeeze Digital Asset Firms
The Blockchain Association is urging the Supreme Court to take up Custodia’s case, saying that broad Fed power over “master accounts” could be used to push crypto firms out of the banking system.
finance.yahoo.com
