Scaramucci Criticizes Crypto’s ‘Hostile Attack’ Following Recent Ruling

Scaramucci and a gavel

On the X social media network, prominent investor Anthony Scaramucci recently expressed his disagreement with a recent court decision, labeling it as “clearly a hostile attack” against the industry.

Federal Reserve is not obligated to grant the bank access

Custodia Bank, based in Wyoming, encountered a significant setback earlier this week when Judge Scott Skavdahl of the District of Wyoming rejected its motion for judgment.

The judge’s ruling stated that the Federal Reserve is not obligated to grant the bank access to its master accounts. In response to the unfavorable ruling, Custodia Bank is contemplating filing an appeal Custodia Bank had argued in its motion that the absence of access to the Fed’s master accounts would place it at a disadvantage compared to certain competitors. However, this argument failed to sway the judge.

Individuals and entities lacking access to the Fed’s master accounts must rely on intermediaries. The Wyoming-based bank initiated its lawsuit in 2022 after its request for master account access was denied by the Fed.

The Fed has the ultimate power to decide

However, as highlighted by Fox Business reporter Eleanor Terrett on X, the first opinion to dismiss contradicts the second:
“The first opinion says that the rules that Congress laid out for the Fed cannot be interpreted as them giving complete and total authority to approve or deny Master Account applications. The second one says that the rules laid out by Congress confirm that the Fed has the ultimate power to decide,” she wrote.

Terrett further observed that one perspective implies constraints on the Fed’s discretion, while the other suggests the absence of limitations.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.