Logistics Company DX Xpress Moves Programmable U.S 2025 /PRNewswire/ -- Logistics company DX Xpress used tokenized U.S dollars to make cross-border payments between Mexico and the United States within seconds and for pennies in cost working with Custodia Bank and Vantage Bank to introduce programmable U.S Avits,™  to global supply chains dollars across borders and through the U.S banking system using a permissionless blockchain network we are always in search for technology to accelerate our operations," said Antonio Bazán "We see the capability to offer integrated dollar payments through our platform to speed up cash conversion cycles allowing for payments to be initiated via a smart contract at delivery and ultimately paying drivers for a completed route within the hour." "Vantage works with our customers to plan for their technology-driven banking needs and in DX Xpress's case that means helping them recruit the best drivers by offering faster easier methods of paying drivers based on location-tracking technology We look forward to deepening our business and foreign exchange customer relationships by offering them faster "We're bringing corporate treasurers the global network effects of permissionless networks by delivering them in a format usable for audited "Our initial Avit launch last month was domestic only but these transactions were cross-border and added a suite of legal rights and consumer protections not available with stablecoins issued by non-banks." Both banks again complied with all applicable U.S which necessitated designing documentation policies and procedures that differ from those of current stablecoin issuers Both banks again worked closely with their respective bank regulators to ensure the success of this first-of-its-kind cross-border use of permissionless tokens within the U.S The transactions deployed Custodia's patent dollar bank deposits on smart-contract type permissionless blockchains Avit™ is a trademark of Custodia Bank About DX Xpress:  DX Xpress is a group of companies dedicated to logistics and trucking of general and specialized cargo in both Mexico and the United States door-to-door services between both countries using its own equipment and through agreements with the main U.S Its installed capacity includes up to 960 units in Mexico and 570 units in the United States positioned at terminals strategically located in both Mexico and the United States This press release may contain forward-looking statements including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 Forward-looking statements describe future expectations or strategies (including product offerings regulatory plans and business plans) and may change without notice You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances or results to differ materially from those projected in the forward-looking statements including the risks that actual results may differ materially from those projected in the forward-looking statements About Vantage: Vantage Bank is prepared for what's possible We are dedicated to delivering sophisticated innovative financial solutions while maintaining a strong commitment to the communities we serve Our suite of powerful digital tools and services rivals those offered by fintechs and similar non-bank financial services companies We operate within a safe and sound environment—providing peace of mind and the financial security that only a regulated institution can offer By integrating advanced technology with personalized service Vantage Bank empowers individuals and businesses to achieve their financial goals while upholding the highest standards of compliance and community engagement Media Contact:Leslie Komet AusburnKomet Marketing Communications210.326.8992[email protected] Do not sell or share my personal information: Custodia Bank has partnered with Texas community bank Vantage to mint transfer and redeem a deposit token on the Ethereum blockchain The reason for using quotes around the term “stablecoin” is because deposit tokens on a permissionless blockchain appear similar to stablecoins but if they are purely backed by deposits and issued by a bank They’re simply a bank deposit using a different technology With stablecoin laws progressing through Congress both the House and Senate versions of the legislation exclude bank-issued tokens backed by deposits so it was a series of test transactions using Avit tokens (Custodia’s brand) on behalf of a bank customer Custodia noted the benefits of low transaction costs Both sets of bank regulators monitored the transactions which featured the compliance requirements you’d expect for banks they were transferred to the customer wallet and used for B2B transactions outside of the banking system before being redeemed at Custodia Bank for demand deposits “We broke ground on the legal/regulatory front banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner,” said Caitlin Long “Custodia looks forward to the reversal of U.S regulatory obstacles that have stymied stablecoin innovation in recent years so that American consumers can benefit from the substantial network effects and global reach of permissionless blockchain technologies.” While the Avit tokens used Custodia’s technology and it used Vantage for Fedwire/ACH services We’d observe there would be some benefit to Custodia providing the deposit services Because it has a special charter which requires it to keep one-to-one backing for deposits There’s nothing wrong with Vantage’s deposits they function perfectly well 99.999% of the time But full reserve deposits would be perfect for that 0.001% of the time And would be attractive to most regulated stablecoin issuers especially after Circle’s USDC stablecoin de-pegged following the collapse of Silicon Valley Bank stablecoin issuers might pay for that service or certainly agree to receive reduced interest But only if the custody bank has direct access to the payment system to support speedy redemptions Custodia has been battling with the Federal Reserve in order to get direct access to a Master account and payment systems rather than needing to go indirectly via other banks such as Vantage One of the Fed’s objections was that without fractional reserve banking While interest rates are at the current level Custodia could probably make at least 3% on many billions of deposits from stablecoin issuers Circle’s USDC has around $7 billion in deposits although Tether only keeps nominal amounts of cash Silvergate and Signature banks are unfortunate examples of banks overly exposed to the crypto sector. However, we’d note that following the crypto crash Silvergate conducted a relatively orderly wind down and Signature was a fractional reserve bank where the reasons for its demise were disputed Ledger Insights Research has published a report on bank-issued stablecoins and tokenized deposits featuring more than 70 projects. Find out more here aimed to “preserve capital” and its charter before the White House takes a presumably more crypto-positive tone Wyoming-based Custodia Bank appears to be laying low until after the Trump team takes office The board of the digital asset-focused lender voted last week “to further reduce operations and preserve capital in anticipation of major crypto policy reforms from the incoming administration.” In a statement on its website Nov. 20 Custodia said it’s taking these steps with an eye toward preserving its charter as well as its application programming interface-based platforms for real-time payments and bitcoin custody It also wants to safeguard a patent on bank-issued stablecoins along with Custodia’s “clean compliance and operating record.” Custodia has spent much of the Biden administration mired in a court fight with the Federal Reserve. The bank applied for a master account with the Fed in October 2020 and had been waiting more than a year and a half for its application to be approved when it sued the central bank The Fed’s standard form agreement states that application “[p]rocessing may take 5-7 business days,” Custodia argued in its complaint Custodia took issue with the speed with which the Fed approved BNY’s application to take custody of clients’ crypto assets – accusing the central bank of favoritism toward incumbent banks A U.S. district court judge in April sided with the Fed ruling that the central bank does not have to give a master account to every eligible institution the day after President-elect Donald Trump will be sworn in Trump told attendees at a crypto conference in July that the “crypto capital of the planet,” creating a bitcoin “strategic reserve” and a presidential advisory council on how to regulate digital assets “The rules will be written by people who love your industry not hate your industry,” Trump told the conference Coinbase, in particular, has accused the SEC of regulation by enforcement and sued to force the agency to outline its thinking SEC Chair Gary Gensler announced last week he would resign Jan. 20, a development Custodia CEO Caitlin Long openly cheered on the social media site X Long said she is "incredibly proud of the Custodia team the services we're building for our customers and our resilience in the face of repeated debankings due to no fault of our own.” Long posted Nov. 7 on X that Custodia had lost its banking partner the previous week – though she did not say which bank that was She credited “Operation Choke Point 2.0,” a reference to an Obama-era policy that pressured banks to exit relationships in sectors that are legal but with perhaps dicey reputations – arms dealers Last week’s note wouldn’t be the first step back Custodia has taken this year. It laid off nine of its 36 employees in August a move Long characterized as “right-sizing so we can maintain operations while preserving capital” during the Fed court battle or “until after Operation Choke Point 2.0 ends.” “I especially thank Custodia’s customers and shareholders who have helped us continue the fight for durability of banking access for the law-abiding U.S crypto industry,” Long wrote last week on Custodia’s website Get the free daily newsletter read by industry experts creating roadblocks for some would-be mergers and acquisitions that lean on valuations Regulators have terminated 11 consent orders against Wells since 2019 Subscribe to the Banking Dive free daily newsletter The free newsletter covering the top industry headlines 2025 Custodia and Vantage Bank partner for ‘first bank-issued stablecoin’ Custodia Bank said it partnered with Vantage Bank to tokenize US dollar demand deposits and issue them on Ethereum News COINTELEGRAPH IN YOUR SOCIAL FEEDThe crypto-friendly Custodia Bank has worked with Vantage Bank to complete what the two firms say is “America’s first-ever bank-issued stablecoin” on a permissionless blockchain Custodia said on March 25 that it tokenized US dollar demand deposits and facilitated the issuance transfer and redemption of the stablecoin “Avit” on Ethereum via the ERC-20 token standard “A new US dollar payment rail has now been activated inside the US banking system,” Custodia added “We broke ground on the legal/regulatory front proving that US banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner,” said Custodia CEO Caitlin Long Source: Caitlin Long Vantage Bank CEO and President Jeff Sinnott said the event was a “pivotal moment in reshaping the financial landscape demonstrating how blockchain and stablecoins can revolutionize payments.” can only be issued by the Federal Reserve and a few legally authorized entities She added that Avit is a “real dollar” as it tokenizes a bank’s demand deposit — funds that customers can withdraw on-demand Custodia has historically championed Bitcoin and Ethereum advocates were quick to note that the bank chose Ethereum for the stablecoin “ETH fixed this. Bitcoin couldn’t,” wrote Ethereum advocate Evan Van Ness. Ethereum educator Anthony Sassano also posted to make clear the “permissionless blockchain” Custodia referred to in its announcement Source: Matthew Sigel Related: Ethereum poised for record highs in Q1 2025, analysts predict Ethereum secures over $125.8 billion worth of stablecoins on its network, nearly doubling the second-place Tron blockchain at $64.8 billion Magazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana? Custodia Bank has partnered with Vantage Bank to launch a stablecoin on a blockchain The banks created Avit tokens on Ethereum using the ERC-20 standard including transacting the Avit token outside the banking system and then transferring it to Custodia Bank to redeem into U.S "We broke ground on the legal/regulatory front banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner," Caitlin Long "Custodia looks forward to the reversal of U.S so that American consumers can benefit from the substantial network effects and global reach of permissionless blockchain technologies." "This event marks a pivotal moment in reshaping the financial landscape demonstrating how blockchain and stablecoins can revolutionize payments," Jeff Sinnot we're empowering banks to lead responsibly in cross-border modernization while also leveraging the strength of the U.S Dollar and demonstrating regulators' support for responsible innovation." Get the latest news and resources from ATM Marketplace Is the Target boycott working? Artist Robert B. Stull has died at 58 City reaches out to entrepreneurs of color to apply for liquor licenses Noemi Custodia-Lora has been recently named the new vice president of academic affairs and workforce development for The Urban College of Boston Custodia-Luna received her bachelor’s degree in biology from the University of Puerto Rico before receiving her doctorate in biology from Boston University and then a fellowship program in cancer research at Tufts Medical School Custodia-Lora began her early career as an associate professor of natural sciences at Haverhill’s Northern Essex Community College she took a short break before returning to the college as executive director of the Lawrence campus and the school’s community relations After her postdoctoral fellowship at Tufts University Custodia Lora remained in teaching and youth-oriented positions as well as in public relations and communications-oriented roles As the vice president of academic affairs and workforce development Custodia-Lora will bolster the college’s continuous development with a focus on meeting the educational and extracurricular needs of its student body she will play an active role in expanding programs geared towards multilingual students; one way she plans to target the needs of individual students is to create a holistic learning environment Custodia-Lora’s work within workforce development throughout the Commonwealth has reached past the confines of the college She has been a part of initiatives across the state focused on bolstering education opportunities and work experience for aspiring members of the workforce without a traditional educational background Her work with the PIES Latinos de NECC program has supported immigrant professionals by providing them with the resources to validate work credentials She has also been instrumental in developing an early college program in Haverhill and Lawrence that enables high schoolers to earn college credit while still in school “Urban College of Boston has a deep history of creating a supportive and it is an honor to have the opportunity to build upon that legacy,” said Custodia-Lora in a press release I firmly believe in the institution’s mission of fostering academic achievement and economic mobility for Boston’s diverse communities I look forward to collaborating with the dedicated faculty to expand opportunities that meet students where they are and prepare them for lifelong success.” Long argued that the Fed's unchanged policy creates an unfair advantage for major banks seeking to issue private stablecoins Image includes combined content which may include AI-generated content Custodia Bank CEO Caitlin Long accused the US Federal Reserve of quietly maintaining anti-crypto policies that favor large banks while presenting an appearance of regulatory easing Long criticized the Fed for rescinding several restrictive crypto policies last week while keeping in place a key rule from January 2023 that blocks banks from directly engaging with crypto She warned that the move would create an unfair advantage for major banks seeking to issue private stablecoins while stifling innovation on private networks Long argued that although the Fed rolled back four pieces of guidance it deliberately kept a critical policy intact The policy prohibits banks from holding cryptocurrencies for their own accounts even to cover small blockchain transaction fees It also bars banks from issuing stablecoins on public blockchains like Ethereum (ETH) private networks typically operated by large financial institutions “The Fed definitely won on PR spin.” She added that the central bank’s April 24 announcement listed every piece of guidance it rescinded but made no mention of the rule it left untouched She further explained that the remaining policy severely limits banks’ ability to offer crypto custody services banks are unable to pay fluctuating gas fees out of pocket when processing on-chain transactions a technical barrier that undermines their ability to serve digital asset clients efficiently Long’s criticism comes amid growing concerns that the Fed is promoting private blockchain solutions controlled by major banks while slowing the adoption of decentralized She warned that this strategy could entrench big-bank dominance over emerging stablecoin markets giving them a head start while other institutions await new federal stablecoin legislation Meanwhile, Senator Cynthia Lummis recently echoed Long’s concerns and criticized the Fed’s latest rollback as “just lip service.” Lummis argued that the central bank continues to wield “reputational risk” warnings to restrict banks from engaging with Bitcoin and other digital assets, labeling them “unsafe and unsound.”She vowed to continue holding Fed Chair Jerome Powell accountable warning that many architects of past crackdowns still influence policy today Despite President Donald Trump’s administration making efforts toward a broader push for a more crypto-friendly environment Long and Lummis contend that federal regulators remain resistant to full-scale blockchain innovation a passionate journalist since Yemen's 2011 Arab Spring has honed his skills worldwide for over a decade CryptoSlate is a comprehensive and contextualized source for crypto news Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate None of the information you read on CryptoSlate should be taken as investment advice nor does CryptoSlate endorse any project that may be mentioned or linked to in this article Buying and trading cryptocurrencies should be considered a high-risk activity Please do your own due diligence before taking any action related to content within this article CryptoSlate takes no responsibility should you lose money trading cryptocurrencies The Web3 community is mobilizing to recover TUSD assets misappropriated through regulatory loopholes in a high-profile digital asset breach open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps) Custodia Bank is a Wyoming-based financial institution purpose-built to bridge the gap between traditional finance and the digital asset economy Caitlin Long is a 22-year Wall Street veteran who has been active in bitcoin and blockchain since 2012 is a United States Senator from the great State of Wyoming Jerome Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5 Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy CryptoSlate has no affiliation or relationship with any coin project or event unless explicitly stated otherwise CryptoSlate is only an informational website that provides news about coins Please do your own diligence before making any investment decisions in connection to the use or reliance of any content you read on the site © 2025 CryptoSlate. All rights reserved. Disclaimers | Terms | Privacy Please add "[email protected]" to your email whitelist has issued the first-ever tokenization of a bank's U.S dollar deposits on a permissionless blockchain custody and reconciliation with its Avid Management System.  Together they conducted eight regulated test transactions including the mint transfer and redemption of the Avit tokens with ensured compliance of U.S the banks said they both worked closely with their respective bank regulators on this project "We broke ground on the legal [and] regulatory front banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner," said Caitlin Long Long also praised Jeff Sinnott, president and CEO of Vantage "I'm grateful to the innovative banks that see where the proverbial puck is going Multiple banks are interested in doing this Many in traditional banking see where things are going and I salute them for being early Sinnott called it "a pivotal moment in reshaping the financial landscape" and said the feat shows "how blockchain and stablecoins can revolutionize payments." dollar and demonstrating regulators' support for responsible innovation," Sinnott said.  Long told American Banker that the accomplishment made stablecoins on par with "real dollars" as classified by the Federal Reserve.  [Christopher] Waller correctly distinguished between 'real dollars' that only banks can issue and 'synthetic dollars' that non-banks can issue He put stablecoins in the latter bucket," Long said that distinction no longer holds because a depository institution – one that even the Fed classifies as a depository institution – has now issued a stablecoin a stablecoin is just a dollar issued under different technology These were part of a series of events known within crypto circles as Operation Choke Point 2.0 which they believe is a coordinated effort by regulators to discourage banks from working with cryptocurrencies The FDIC in 2022 sent 24 pause letters to banks encouraging them to think twice before working with cryptocurrencies Last month the FDIC released documents relating to the incident The election of President Donald Trump was welcomed by many in the industry. Trump declared at a bitcoin conference in Nashville over the summer he would make the United States the "crypto capital of the planet" and just two months into his second term, the president has already made strides towards that, including hiring many cryptocurrency oriented staffers the Federal Reserve is defending its current practices in court That argument raises thorny legal questions about whether stress tests are more like rules or adjudications Innovation of the Year 2025 Innovation of the Year 2025: Meet the honorees The 10 winning innovations span categories from AI and payments to risk and compliance An overall winner will be announced at American Banker's Digital Banking event on June 2 Student loans CFPB wins rare judgment over student loan debt relief firm A federal judge has ordered FDATR a now-defunct student loan debt relief provider to pay $43 million in restitution and fees bucking the trend of cases brought by the Biden administration-era Consumer Financial Protection Bureau being dropped Industry News How Cathinka Wahlstrom is modernizing America's oldest bank BNY's chief commercial officer talks about AI tariffs and her efforts to help create a leaner FORECLOSURE WARS She stopped paying her mortgage more than 15 years ago This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page Custodia Bank and Vantage Bank worked on the mint and redemption of Avit tokens for a bank customer on the Ethereum mainnet including transferring by the bank customer to its Avit tokens into self-custody transacting with its Avit tokens business-to-business outside the banking system and relocating its Avit tokens back to Custodia Bank for redemption into USD demand deposits Vantage Bank managed the stablecoin fiat reserves and offered Fedwire/ACH services Custodia Bank focused on blockchain issuance and redemption services the two banks complied with all applicable regulatory requirements different from those of current stablecoin issuers representatives from Custodia Bank mentioned that the bank underlined how US financial institutions can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatory-compliant manner Vantage Bank highlighted that the initiative supports the advancement of the financial landscape while also indicating how blockchain and stablecoins can further optimise payments Custodia Bank CEO Caitlin Long on CoinDesk TV's "All About Bitcoin." (CoinDesk TV) What to know: The banks used Custodia's Avit stablecoin for redemption and programmable payments while maintaining traditional banking safety and oversight.Custodia Bank and Vantage Bank have completed the tokenization of U.S dollar demand deposits on the Ethereum mainnet The banks issued and redeemed Custodia's Avit stablecoins on the Ethereum mainnet marking a major milestone in blockchain-based banking innovation Vantage Bank handled fiat reserves and traditional banking services (Fedwire/ACH), while Custodia oversaw blockchain functions such as issuance, custody, and reconciliation through its Avit Management System. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin's role within the broader financial system. In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR). is putting its resources toward an ongoing lawsuit with the Federal Reserve which denied the lender a master account last year Digital asset-focused Custodia Bank has laid off some employees amid its current battle with the Federal Reserve for a master account Founder and CEO Caitlin Long said in an emailed statement to Banking Dive that the bank was “right-sizing so we can maintain operations while preserving capital” during Custodia’s lawsuit against the Fed or “until after Operation Choke Point 2.0 ends,” she said referring to the alleged ongoing crackdown on digital assets under the Biden administration Operation Choke Point was the name of an Obama-era effort that “choked off” high-risk industries like payday lending Custodia notified employees Thursday that nine of its 36 employees were being laid off, Fox Business reported A person with knowledge of the matter told Banking Dive that Custodia is operating with its hands tied because of the high cost of not having its own Fed master account and “harassed by Fed regulators behind the scenes,” the person said Long said in an emailed statement that the digital-asset crackdown “has been devastating for the law-abiding U.S and Custodia Bank has been hit hard despite our strong risk management and compliance track record.”  Leading Democrats met with members of the crypto industry this month via Zoom in an attempt to repair relations, Fox Business reported Aug had some sore spots: After Deputy Treasury Secretary Wally Adeyemo told attendees that the government had no coordinated effort to block the crypto world from the traditional financial system a crypto executive asked for a show of hands of whose companies had been turned down for banking services due to White House policies Nearly all of the industry representatives raised their hands A spokesperson for Custodia did not elaborate to Banking Dive on the roles affected by Thursday’s layoffs While Bank of America CEO Brian Moynihan called the recent regulatory shift “classic re-engineering,” one peer exec said the changes “are taking all the oxygen in the room.” bank's demand deposits on a permissionless blockchain CHEYENNE, Wyo., March 25, 2025 /PRNewswire/ -- Custodia Bank, working with Vantage Bank yesterday completed America's first-ever tokenization of a bank's U.S dollar demand deposits on a permissionless blockchain by issuing transferring and redeeming Avit™ stablecoins for a bank customer dollar payment rail has now been activated inside the U.S at a time when the global community is increasingly demanding U.S All parties to the series of test transactions observed several efficiencies programmability and auditability within a safe compliant and regulated banking environment transfer and redemption of Avit tokens for a bank customer on the Ethereum mainnet using the ERC-20 standard with Vantage Bank managing the stablecoin fiat reserves and providing Fedwire/ACH services Custodia Bank managed blockchain issuance/redemption services blockchain transaction monitoring and reconciliation using its Avit Management System The eight stages included transfers by the bank customer of its Avit tokens into self-custody and transferring its Avit tokens back to Custodia Bank for redemption into U.S The banks complied with all applicable U.S Both banks worked closely with their respective bank regulators to ensure the success of this first-of-its-kind project demonstrating how blockchain and stablecoins can revolutionize payments Dollar and demonstrating regulators' support for responsible innovation." Media Contact: [email protected] About Vantage Bank: Vantage Bank is prepared for what's possible 2025 Custodia Bank CEO calls out Washington’s debanking ’skullduggery’ Custodia Bank fought to service crypto firms under the previous administration but faced resistance from US regulators News COINTELEGRAPH IN YOUR SOCIAL FEEDRecent efforts to “debank” crypto firms in the US revealed a “staggering” level of corruption among government officials “The magnitude of skullduggery that is happening in Washington D.C is really incredible… and it’s not over yet,” Caitlin Long In 2023, the US Federal Reserve, which regulates banks, stymied Custodia’s efforts to service crypto firms by denying the bank access to a master account, citing Custodia’s involvement in “crypto-asset-related activities.”  A master account would allow the bank to custody assets directly with the central bank and access payment rails for inter-bank transfers Custodia took legal action against the Fed in a bid to reverse the decision Custodia Bank CEO Caitlin Long speaks at Bitcoin Investor Week Related: FDIC releases 790 pages of crypto-related letters in regulatory pivot Industry outrage over alleged debanking reached a crescendo when a June 2024 lawsuit spearheaded by ​​Coinbase resulted in the release of letters showing US banking regulators asked certain financial institutions to “pause” crypto banking activities has criticized the prior administration’s approach to crypto-friendly banks and vowed to better integrate cryptocurrencies In a Jan. 23 executive order Trump told agencies to prioritize “fair and open access to banking services” for digital asset firms the battle for regulatory clarity isn’t over it has evolved into a multi-directional fight among different types of stablecoin issuers seeking preferential rules There is an ongoing “scrum between the big banks… and the incumbent stablecoin issuers and then there’s Tether,” which is not based in the US The result has been “this incredible flow of money that has gone from the banks and the crypto industry to people in [Washington] D.C. and they’re all going to fight,” Long said “I don’t know how it’s going to come out,” she added Magazine: Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower combines fast settlements and transparency in a regulated framework Custodia Bank and Vantage Bank have issued the first US bank-backed stablecoin, called Avit, on a public blockchain network, according to a March 25 press release The stablecoin was used in a series of test transactions with a business customer. The pilot included minting, transferring, and redeeming tokens on the Ethereum (ETH) mainnet using the ERC-20 standard The move marks the first time dollar demand deposits from regulated banks have been tokenized on Ethereum The series of eight test transactions demonstrated a fully compliant process for minting and redeeming stablecoins on a permissionless blockchain Avit tokens were created using the widely adopted ERC-20 standard and the pilot involved real-world business-to-business transfers and redemptions into fiat US dollars The move represents a breakthrough in blending blockchain technology with the US banking system at a time of rising global demand for digital dollar payments and reconciliation of the tokens using its proprietary Avit Management System held the fiat reserves backing the tokens and facilitated traditional settlement services via Fedwire and ACH The test involved a bank customer transferring Avit tokens into self-custody transacting with third parties outside the banking system and redeeming them back into dollar deposits Unlike existing stablecoins that often operate outside the traditional banking perimeter the Avit pilot was conducted entirely within a regulated banking environment Both banks ensured compliance with Bank Secrecy Act (BSA) and Office of Foreign Assets Control (OFAC) rules This required the development of tailored documentation and procedures that meet federal banking standards — establishing a potential blueprint for other institutions Custodia Bank CEO Caitlin Long said: “We broke ground on the legal and regulatory front proving that US banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily compliant manner.” the pilot revealed the potential of blockchain-based stablecoins to modernize US dollar payments while retaining the safeguards of the banking system Vantage Bank CEO Jeff Sinnott called the milestone “a pivotal moment in reshaping the financial landscape,” noting it demonstrates how banks can lead in cross-border payment innovation while reinforcing trust in the American dollar The transactions also marked the first use of Custodia’s US patent (No for the tokenization of bank deposits on permissionless blockchains The banks intend for this pilot to serve as a foundation for future real-time programmable payment infrastructure anchored in the regulatory rigor of U.S policymakers continue debating the role of stablecoins in the broader economy the Avit launch may signal a path forward for dollar digitalization that aligns innovation with oversight Please add "[email protected]" to your email whitelist The Bank Policy Institute, the American Bankers Association, the Consumer Bankers Association and the Independent Community Bankers of America all filed motions in support of the Fed in its ongoing legal battle with Custodia Bank "Both as a matter of law and sound public policy reserve banks have discretion to grant or deny a master account This discretion is no accident," wrote BPI and The Clearing House "It reflects Congress's recognition that master account holders receive several important privileges and … can serve as a risk transmission channel to the Reserve Banks and other participants in the payment system." Earlier this year, a U.S. district court judge ruled against Custodia in its lawsuit against the Federal Reserve Board in Washington and the Federal Reserve Bank of Kansas City The firm argued that it was unduly denied a so-called master account which serves as a single point of access to the Fed's various payments rails and other financial services Custodia is now challenging that ruling in the U.S Court of Appeals for the 10th Circuit arguing that the lower court erred in upholding the Kansas City Fed's decision to deny Custodia a master account.  the case has been fully briefed by both sides and their supporting filers but oral arguments are expected to be delivered sometime before the end of the year Fundamentally, Custodia claims the district court misinterpreted the Monetary Control Act of 1980 which Custodia says guarantees a master account access to all banks regardless of whether they are chartered at the state or national level unambiguous decision to rescind [the Fed's] discretion in the MCA and make certain covered services mandatory," Custodia wrote and commentators all agreed at the time — and in the subsequent three decades — that the MCA's equal access mandate was broad applying to all eligible depository institutions." Politics and policy Custodia to appeal ruling in Fed lawsuit April 26 2024 3:47 PM But banking groups see the matter differently While the trades avoided commenting on Custodia's master account bid directly they argued that it was important for the Fed to safeguard its systems against risks and endorsed the Fed's three-tiered system for assessing applications — the framework gives federally supervised and insured depositories the easiest path to approval while applying the most scrutiny to state-chartered institutions without insurance.  "Federally insured and regulated banks … are subject to a streamlined application process because the comprehensive and in some cases continuous federal regulation and oversight to which they are subject gives the Fed assurance that they will not compromise the safety or integrity of the federal banking system," the ABA "But with novel institutions like Custodia and its Reserve Banks must therefore be able to carefully scrutinize such institutions' business models before effectively giving them the keys to the palace that is our banking system." Even the digital bank's home state banking group It praised the "vast overlapping web of federal laws and oversight by federal prudential regulators" as necessary safeguards for the country's banking system The trade group argued that reserve banks have "statutory discretion" over master account access and aren't obligated to "automatically and unconditionally grant such access" to all chartered depositories "The statutes in question here are unambiguous and preserve this discretion and the integrity and soundness of the federal banking system's payment services would be compromised and undermined if Custodia's arguments are accepted," the WBA wrote Much of Custodia's argument hinges on a single word: "shall." A provision of the Monetary Control Act — a law aimed at bolstering the Fed's ability to transmit its monetary policy — states that Fed services "shall be available to nonmember depository institutions." The bank interprets that statute as guaranteeing all banks including those that are not members of the Federal Reserve System Custodia's view is backed by digital asset groups the Global Blockchain Business Council and the Blockchain Association Also weighing in on Custodia's behalf were the libertarian advocacy group Americans for Prosperity Foundation and several Republicans on the Senate Banking Committee and House Financial Services Committee Custodia's supporters include some strange political bedfellows including former Obama solicitor general Don Verrilli — who called the Fed's actions related to Custodia "an ill-conceived form of protectionism" — and former George W who said the lower court's decision amounted to a "grant of unlimited discretion" to the Kansas City Fed Verrilli authored a brief on behalf of Blockchain Association. Clement — who served as chief litigator for Loper Bright Enterprises in its Supreme Court victory against the U.S. Department of Commerce, ushering in the end of Chevron deference — filed on behalf of the Digital Chamber and Global Blockchain Business Council the two attorneys served on opposing sides in litigation involving the Affordable Care Act The state of Wyoming also filed a brief defending its Special Purpose Depository Institution The charter is aimed at providing a limited banking license to banks dealing with cryptocurrencies It prohibits holders from issuing loans and requires them to maintain 100% backing of customer deposits The Fed's denial of Custodia's application called into question the state's ability to oversee risks as effectively as federal banking regulators "The state has established a detailed and extensive process that ensures the SPDI banks are well-regulated with built-in oversight processes," the state's attorneys wrote Speaking to Rob Nelson on TheStreet Roundtable Long said the current lack of regulatory and accounting treatment is keeping institutional capital on the sidelines “The vast majority of crypto trading pairs have a U.S dollar token on one side,” she explained “It tends to be either Tether or USDC But where it might change is institutional markets.” stablecoins are “accounted for… as a general intangible,” she said “not accounted for as a cash equivalent There’s a huge difference.” That discrepancy is what’s kept hedge funds and banks from entering the space — despite their appetite for exposure she believes traditional finance will move fast come into this market in a very big way,” she said “We’re going to start to truly marry these two systems which have stayed very separate for years.” Long says there will still be creative ways to generate yield “The stablecoin itself won’t pay interest,” she noted “but the credit structure that you invest in might.” “The first party to go through and get all of that done is going to be blazing the trail,” she said “Lord knows Custodia has been a trailblazer We’ve got the arrows in our back to show for it.” Long believes the market is finally ready: “We survived We can take that business plan from five years ago… and start to apply it now that the ice is thawing.” U.S. lawmakers push forward on stablecoin regulation with new House BillOn Mar. 27, lawmakers in the U.S. House of Representatives officially released their version of long-awaited stablecoin legislation marking a major step forward in crypto policy French Hill — leaders of the House Financial Services Committee’s digital assets efforts — aims to define how dollar-pegged stablecoins can be issued and regulated Hill described the newly titled “STABLE Act” as a continuation of the House's digital asset agenda while Steil emphasized that the bill “closes the gap” with a similar measure already advanced in the Senate The Senate’s version of the stablecoin bill passed out of committee with bipartisan support and is now headed for a full floor vote.  Crypto bank Custodia’s fight with the Kansas City Federal Reserve for access to key banking services endangers the whole US banking system That’s according to a brief filed with the court on Wednesday by the nation’s 11 other Federal Reserve banks as part of Custodia’s appeals case The ability to bar risky banks from access to the Fed’s system “is a fundamental and universal risk-management tool inherent in banking,” according to the brief “Custodia’s position finds no support in law or logic the regional banks fear that if Custodia wins its case the Federal Reserve will be forced to grant access to all banks — no matter how shaky These are banks that could facilitate money laundering experience a lot of downtime in their systems Bank trade associations filed their own briefs in support of the central banks’ letter Custodia founder and CEO Caitlin Long told DL News it was “no surprise” that established banks are throwing their weight behind the Fed woman-owned bank in Wyoming operating in the same businesses you claim are so risky while big banks are simultaneously piling into them?’ It confirms “our observations that both protectionist practices and regulatory capture exist in the banking industry,” Long said “Big banks recently sought and received non-objection from the Fed to enter Custodia’s line of businesses so I have a question for the bankers’ trade groups and the Fed: What is so scary to you about a small while big banks are simultaneously piling into them?” Long’s fight highlights the crypto industry’s complaints that the US regulatory establishment has shut them out of essential banking services Some even label it a conspiracy and compare it to Operation Choke Point which was used during the Obama administration to cut off banking services to industries like gun manufacturers and porn providers Long founded Custodia to fill this gap in crypto banking The firm attained a licence to custody crypto in 2020 under Wyoming’s industry-friendly laws Custodia then applied to its regional central bank The Kansas City Fed is one of 12 regional banks that function as the operating arm of the Federal Reserve They’re effectively banker’s banks, supplying America’s 4,500 small banks with access to Fed liquidity and payments systems A master account grants access to these services After waiting in vain for a master account Custodia sued the Kansas City Fed in 2023 on the basis that as a depository institution it was required to grant it a master account The bank argued the opposite — while it can grant master account access to depository institutions The Federal Reserve later said Custodia had deficiencies in its risk management practices a narrow and volatile sector of the economy Custodia lost its case and appealed in April Custodia has some powerful allies. Two former solicitors general have filed briefs in support echoing arguments that the situation amounts to a “Choke Point 2.0.″ Meanwhile, Custodia’s court battle has cost the business, as it has had to lay off nine of its 36 employees Custodia is “operating with two hands tied behind our bank,” Long told DL News recently “We’ve been hamstrung by what the Fed did to us.” This story has been updated to include Long’s comments to DL News Joanna Wright writes about policy and regulation. Reach out to her at joanna@dlnews.com Long said “Operation Chokepoint 2.0,” a program perceived as the Biden administration’s regulatory crackdown on the crypto industry by the community “has been devastating” for law-abiding US crypto businesses like Custodia Bank Despite Custodia’s strong track record in risk management and compliance the bank has been struggling to overcome these regulatory challenges Custodia is currently engaged in a legal battle with the Federal Reserve (Fed) related to its application for a master account which is essential for accessing the Fed’s payment systems as it must rely on other banks with such access “We are right-sizing so we can maintain operations while preserving capital until after Operation Choke Point 2.0 ends or our Fed lawsuit concludes successfully,” Long explained The cuts come as the broader banking sector remains wary of engaging with crypto firms influenced by federal warnings about the risks associated with digital assets two of its partner institutions have ended relationships with the bank due to its association with crypto The term “Choke Point 2.0” is often described as a renewed effort by a number of US regulatory bodies including the Securities and Exchange Commission (SEC) the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to restrict access to banking services for the crypto industry The initiative is believed to have effectively discouraged these firms from operating within the traditional financial system was previously vocal about the implications of Operation Choke Point 2.0 particularly in light of the Fed’s recent actions against Customers Bank He also warned that the regulatory environment for crypto could become even more stringent if Vice President Kamala Harris wins the presidency Today, the Fed confirmed that Operation Choke Point 2.0 remains in full swing, provided valuable insight into how it works, and verified that the Harris crypto "reset" is a scam. The Fed revealed all of this in a 13-page enforcement action it issued this morning against… pic.twitter.com/zhLRRWAH0E — Tyler Winklevoss (@tyler) August 9, 2024 Don’t have an account? Create one Already have an account? Sign In Sign In ' + scriptOptions._localizedStrings.webview_notification_text + ' " + scriptOptions._localizedStrings.redirect_overlay_title + " " + scriptOptions._localizedStrings.redirect_overlay_text + " Connecting decision makers to a dynamic network of information Bloomberg quickly and accurately delivers business and financial information The Federal Reserve and one of its regional banks are attempting to seal off the banking system from cryptocurrencies in the absence of a federal framework to regulate digital assets counsel for a crypto-focused bank told a federal appeals court The Federal Reserve Bank of Kansas City justified rejecting Custodia Bank’s application for a Fed master account by outlining its concerns about the bank’s risk profile and novel bank charters more broadly But the real reason for denying Custodia access to the Fed’s payment system is a “frustration” at the lack of a federal regulatory regime for crypto workflow tools and premium legal & business news Log in to keep reading or access research tools In Federal appellate practice, an amicus curiae (“friend of the court”) brief allows non-parties to provide the court with additional perspectives or entities with a strong interest in the case and ensure the court understands potential impacts beyond just the parties to the case Among the briefs filed in the Custodia case all of which are powerful and explore different aspects of the case the one submitted by former Solicitor General Paul Clement stands out due to its comprehensive argument on the constitutionality of the Federal Reserve’s actions This article presents a high level summary and analysis of each of these briefs examining how each addresses the core issues at stake starting with a more detailed focus on Clement’s brief for The Digital Chamber The Clement amicus brief in support of Custodia lays out a robust constitutional argument, primarily focusing on the Appointments Clause. This clause, found in Article II, Section 2 of the U.S empowers the President to appoint officers of the United States with the advice and consent of the Senate The upshot is that Federal Reserve Bank presidents are not appointed by the President with the advice and consent of the Senate and removable by the President (as principal officers must be) or the head of an executive department and removable by the President or a principal officer (as inferior officers must be).2 Clement asserts that the Federal Reserve’s board members are not properly appointed under the Appointments Clause This lack of adherence to constitutional procedures undermines the legitimacy of their actions specifically including the denial of Custodia’s master account application By bypassing the constitutionally mandated process the Federal Reserve operates with a degree of autonomy that the framers of the constitution did not intend The brief underscores the idea that significant executive powers vested in individuals who are not appointed in accordance with the Appointments Clause are fundamentally unconstitutional This argument is particularly compelling with respect to Custodia because it directly challenges the very structure and legitimacy of the Federal Reserve’s decision-making process bypassing the argument of whether or not granting a Master Account is discretionary Another significant aspect of Clement’s brief is the emphasis on judicial review Clement argues that the actions of the Federal Reserve should be subject to strict judicial scrutiny to ensure they comply with constitutional and statutory mandates Noting that the District Court’s opinion would render the Federal Reserve’s actions unreviewable he points out that the judiciary has a crucial role in curbing administrative overreach aligning with the recent Supreme Court decision overturning Chevron deference The Chevron doctrine, established in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. required courts to defer to agency interpretations of ambiguous statutes Clement’s brief references the Supreme Court’s recent move to overturn this doctrine emphasizing that courts must independently interpret statutes rather than deferring to agencies This shift reinforces the need for judicial oversight of the Federal Reserve’s actions ensuring they do not exceed their statutory and constitutional authority Clement underscores the necessity of having an independent judiciary that can review and overturn decisions made by federal agencies that overstep their boundaries This argument is crucial because it reinforces the checks and balances designed to prevent any single branch of government from exercising unchecked power Clement’s arguments extend beyond constitutional principles to the practical implications for the dual banking system He argues that the Federal Reserve’s discretionary power to deny master accounts to state-chartered institutions like Custodia undermines the balance between federal and state regulatory systems This imbalance threatens the innovation and diversity that the dual banking system aims to promote highlighting the origins of the dual banking system going back to the Civil War and its role in fostering financial innovation By granting undue power to the Federal Reserve the current system deviates from this historical precedent centralizing authority in a way that stifles competition and state-level regulatory experimentation The dual banking system was designed to create a healthy balance between federal oversight and state innovation Clement argues that the Federal Reserve’s current practices disrupt this balance leading to a more centralized and less dynamic banking system This disruption not only affects state sovereignty but also limits the potential for financial innovation and diversity Clement’s brief builds a case on constitutional grounds arguing that the Federal Reserve’s actions violate several key principles enshrined in the U.S and the necessity for judicial review to prevent administrative overreach Clement emphasizes that the separation of powers is a fundamental principle that ensures no single branch of government can wield unchecked power By allowing unelected officials at the Federal Reserve to make significant regulatory decisions without pr oper oversight The brief points out that the separation of powers was designed to prevent the concentration of power and to protect individual liberties by ensuring that legislative Clement argues that the Federal Reserve’s actions blur these boundaries granting quasi-legislative and quasi-judicial powers to an executive agency Clement’s arguments have broader implications for how constitutional principles are applied in the context of modern administrative agencies He suggests that the issues raised in Custodia’s case are not isolated but indicative of a larger trend where federal agencies increasingly operate with autonomy that challenges constitutional limits By bringing these arguments to the forefront Clement’s brief builds on his victory against Chevron in Loper Bright and invites the courts to again reconsider the extent of administrative agency powers and reinforce the constitutional boundaries that must govern their actions This approach not only addresses the specific issues faced by Custodia Bank but also aims to further cement precedent for future cases involving federal regulatory agencies the critical importance of master accounts to state-chartered banks and the serious constitutional questions that the decision below raises make this case a paradigm example of the circumstances in which constitutional-avoidance principles should control Allowing the decision below to stand will enable politically unaccountable federal officials to exercise broad discretion to place massive and unwarranted obstacles in the path of state-chartered financial institutions upending the traditional balance between federal and state banking regulators and affording Federal Reserve Bank presidents expansive power without meaningful political or judicial oversight The Blockchain Association’s amicus brief was filed by Donald Verrilli who served as President Obama’s Solicitor General It brings a tech and innovation heavy perspective championing the cause of financial innovation and digital assets its application was caught in the current of federal regulators’ aggressive coordinated efforts to “debank” the digital asset industry federal regulators began rolling back prior guidance that had permitted depository institutions to provide digital asset services Verrilli’s brief centers on the critical role of innovation in the financial sector It contends that the Federal Reserve’s denial of Custodia’s master account application stifles technological advancements and limits the potential for financial inclusion The brief underscores that innovation is not just a buzzword but a necessary evolution for a dynamic financial ecosystem The brief highlights the burgeoning field of digital assets and fintech emphasizing that these assets are now deeply embedded in our financial system and institutions like Custodia are at the forefront of this revolution It argues that by denying Custodia access to Federal Reserve services the Federal Reserve is intentionally hampering the growth of these cutting-edge financial technologies The brief advocates for an inclusive financial system that supports digital asset integration ultimately benefiting consumers and the broader economy A cornerstone of the brief is the argument for non-discriminatory access to Federal Reserve services It posits that all depository institutions regardless of their focus on digital assets should have equal access to the essential services provided by the Federal Reserve This access is crucial for fostering a level playing field where innovation can flourish without regulatory bias Despite the digital asset industry’s pressing need for banking services coordinated campaign to debank the industry That effort is central to a complaint recently filed against FDIC by an affiliate of Coinbase and is widely acknowledged in the financial sector.5 Wyoming’s Attorney General steps into the ring with a staunch defense of the state’s regulatory prowess This brief is a clarion call for recognizing and respecting the meticulous framework Wyoming has established for Special Purpose Depository Institutions (SPDIs) The Attorney General’s brief is grounded in the defense of state sovereignty It argues that the Federal Reserve’s denial of Custodia’s master account application undermines the authority and innovation fostered by Wyoming’s robust regulatory framework The brief emphasizes that states have the right to regulate financial institutions within their borders and that this sovereignty is crucial for financial innovation The brief examines the specifics of Wyoming’s regulations for SPDIs It argues that Wyoming’s framework provides robust oversight and consumer protections that should be recognized and respected by federal authorities the Wyoming Attorney General accuses the Federal Reserve of dismissing the effectiveness of state-level regulation A disregard of Wyoming’s right to charter depository institutions in the two tier banking system appears to be the motivation for this disparate treatment of Wyoming-chartered banks the Appellees appear to have arbitrarily created a distinction between federally regulated and non-federally regulated banks.6 Wyoming has positioned itself as a leader in financial innovation The brief argues that the Federal Reserve’s actions stifle this innovation hindering the development of new financial products and services that could benefit consumers and the economy It underscores the importance of allowing states to experiment with and implement innovative regulatory approaches The Attorney General’s brief criticizes the Federal Reserve for deviating from its historical practice of granting master accounts to a wide range of depository institutions It argues that such inconsistency undermines the predictability and stability of the financial system the Federal Reserve can ensure a stable and predictable regulatory environment the Federal Reserve has violated a longstanding principle of equality between federally-chartered and state-chartered banks The brief argues that such overreach not only disrupts state-led innovation but also sets a dangerous precedent for the centralization of financial regulatory power This has created a Kafkaesque situation where a SPDI Bank is denied a master account because it is not federally regulated even while it is also denied federal regulation This situation frustrates Wyoming’s regulatory scheme and its right to charter state banks.7 The amicus brief from the Americans For Prosperity (AFP) Foundation emerges as a powerful advocate for non-discriminatory access and regulatory accountability and covers many areas also touched on by other amici It emphasizes the critical need for the Federal Reserve to operate within clear statutory mandates ensuring fairness and equality in the financial system The AFP brief argues that the Federal Reserve’s denial of Custodia’s master account application blatantly violates 12 U.S.C which mandates equal access to Federal Reserve services for all depository institutions the Federal Reserve is accused of engaging in discriminatory practices that undermine the statute’s intent AFP underscores that statutory mandates must be followed to maintain fairness and integrity within the financial system For the dual banking system to function as Congress intended State-chartered banks must be able to access the Federal Reserve’s services—and receive a master account—as a matter of right and on equal terms with federally chartered banks.8 A significant thrust of the AFP brief is its focus on the Administrative Procedure Act (APA) It argues that the Federal Reserve’s actions are arbitrary and capricious The brief highlights the importance of the APA in ensuring that federal agencies operate transparently and within the bounds of their authority the Federal Reserve’s decision-making process is called into question AFP strongly advocates for robust judicial review to keep federal agencies in check The brief posits that judicial oversight is essential to prevent federal overreach and ensure that regulatory bodies like the Federal Reserve adhere strictly to statutory and procedural requirements This stance aligns with the recent judicial trend towards curbing administrative overreach ensuring that agencies do not operate beyond their legally defined limits The AFP brief emphasizes the need for transparency and accountability in federal regulatory actions It argues that the Federal Reserve must be held accountable for its decisions which should be subject to public scrutiny and judicial review This approach ensures that regulatory practices are not only fair and equitable but also visible and accountable to the public and other stakeholders and stands out with a sharp focus on statutory overreach and the need for regulatory consistency This brief argues that the Federal Reserve’s actions threaten the balance and predictability necessary for a stable financial system The Congressional brief argues that the Federal Reserve has overstepped its statutory authority by denying Custodia’s master account application It contends that the denial not only violates the clear mandates of 12 U.S.C § 248a but also represents a broader trend of federal agencies exceeding their legal boundaries The brief meticulously outlines how the Federal Reserve’s actions contradict the statute’s intent to ensure non-discriminatory access to Federal Reserve services for all depository institutions It also addresses the broader implications of the Federal Reserve’s actions on financial stability and innovation By denying access to state-chartered institutions like Custodia the Federal Reserve stifles competition and innovation within the financial sector The brief argues that maintaining a consistent and predictable regulatory environment is crucial for fostering innovation and ensuring the stability of the financial system Despite original concerns by some that the MCA would destroy our dual banking system application of the law over the past 44 years has proven that those fears were unfounded because the dual banking system remains alive and well today Should the District Court’s decision be affirmed it would serve as a quasi-legislative paradigm shift that would subvert the states’ role within our dual-banking system.9 The amicus brief from the Wyoming Secretary of State10 takes a direct approach arguing that the District Court’s opinion opens the door for the Federal Reserve to erode state sovereignty and dismantle the dual banking system without Congressional approval Wyoming’s Secretary of State shines a spotlight on the Federal Reserve’s encroachment upon state regulatory authority By denying Custodia’s master account application the Federal Reserve is not only undermining Wyoming’s innovative financial framework but also violating Federal statutes designed to balance Federal action with state sovereignty At the heart of the brief is the interpretation of 12 U.S.C a statute mandating that all Federal Reserve services be available to depository institutions which necessarily includes those chartered by states The Wyoming Secretary of State argues that the Federal Reserve’s attempt to use a discretionary standard to deny Custodia’s application directly contravenes the plain language and intent of this statute The brief then discusses the dual banking system’s significance emphasizing its role in promoting financial innovation and diversity the Federal Reserve threatens the delicate balance that allows both federal and state regulators to coexist and thrive This balance is essential for fostering a robust financial system where innovation can flourish without undue federal interference Wyoming’s pioneering approach to business and financial regulation as the birthplace of Limited Liability Companies (LLCs) and now Special Purpose Depository Institutions (SPDIs) is highlighted as a model of state-led innovation limiting the potential for new financial products and services that could benefit consumers and the broader economy Can the Federal Reserve say with a straight face that a 772-page bank examination manual for SPDIs is really a “race to the bottom,” especially while the Federal Reserve itself allows such activities to take place in other banks today without adopting any standards for banks at all?11 Former Senator Pat Toomey’s amicus brief takes a firm stand on the necessity of transparency and legislative oversight Senator Toomey has submitted a neutral brief highlight the urgent need for clear guidelines and public accountability in the exercise of the Federal Reserve’s powers the 2023 NDAA Amendment does not—and was not intended to—grant or opine on any substantive rights of the Board The Amendment was drafted in response to the Board’s refusal to address repeated Senate inquiries into the handling of Reserve Trust’s master account application.12 Senator Toomey’s brief underscores the critical importance of transparency in federal regulatory actions It argues that the Federal Reserve must operate with clear publicly accessible guidelines to ensure that its decisions are fair Noting that the Federal Reserve has a historical problem with transparency it emphasizes that without more transparency undermining public trust and the integrity of the financial system The Senate Banking Committee witnessed the lack of transparency in the master account approval process first-hand in January 2022 during the Senate vetting and confirmation process for a presidential appointee nominated to serve as vice-chair for banking supervision at the Board.13 Toomey’s brief places significant weight on the legislative framework governing the Federal Reserve’s actions It discusses recent amendments and legislative changes stressing that any major regulatory decisions must be explicitly authorized by Congress This focus aligns with recent judicial moves to curb administrative overreach reinforcing the need for regulatory bodies to operate within clearly defined legislative boundaries The brief then goes into the legislative intent behind key statutes arguing that the Federal Reserve’s nontransparent denial of Custodia’s master account application deviates from the principles those laws were passed to specifically address Toomey asserts that the Federal Reserve must respect the boundaries set by Congress ensuring that its actions reflect legislative intent rather than unchecked administrative discretion Senator Toomey’s brief argues for enhanced legislative oversight of federal regulatory bodies By reinforcing the role of Congress in setting and overseeing regulatory policies the brief seeks to ensure that federal agencies remain accountable to the public and their elected representatives This approach is intended to safeguard against arbitrary regulatory decisions and promote a more accountable regulatory environment The various amicus briefs submitted in Custodia’s appeal present myriad arguments against the Federal Reserve’s actions ranging from constitutional arguments to statutory interpretation and the broader implications for financial innovation unreviewable Federal Reserve system is neither supported by the Constitution nor a healthy and desirable outcome for our country the arguments presented in these briefs will play a crucial role in shaping the future of financial regulation and state sovereignty in the United States 1 Amicus briefs supporting the Federal Reserve may be filed up to seven days after their reply brief is filed 10 Full disclosure: the author of this article is also the author of the Wyoming Secretary of State’s amicus brief Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine Bitcoin Magazine is the oldest and most established source of trustworthy news information and thought leadership on Bitcoin The Disney+ original series created in collaboration with Fremantle backed producer Adolfo) is written and created by Juanjo Moscardó Rius Disney+ has released the trailer for new original Spanish series Shared Custody the comedy-drama that marks Champions maker Javier Fesser’s first directing role in TV streaming January 24 exclusively on Disney+ globally who created the Goya-nominated A Shitty Therapy Shared Custody is an 8-episode dramatic comedy unraveling the fallout of separation between two parents Cris and Diego and an examination of this increasingly common dynamic in the modern world and friendly adults for the sake of their five-year-old daughter but neither of them can afford to live alone and take care of her so both are forced to move back to their respective parents’ houses The grandparents are excited that their children and granddaughter are back in their lives What began as an amicable separation soon takes a turn when they run into harsh reality The leading couple is played by Lorena López (Past Lies) and Ricard Farré (Good Manners) The cast is completed by Adriana Ozores (Los pequeños amores Fernando Sansegundo (Historias lamentables) The creators are screenwriters Juanjo Moscardó Rius (A shitty therapy Amor en polvo) and María Mínguez (Vivir Dos Veces winner of the Goya for best director for Camino directs the series in the first work he does not write directly Fesser is responsible for some of the highest-grossing and most renowned comedies in Spanish cinema such as Campeones La gran aventura de Mortadelo y Filemón or El milagro de P In addition to winning two Goya Awards for his films Camino and Mortadelo y Filemón contra Jimmy el Cachondo he was nominated for an Oscar for his short film Binta y la Gran Idea two Gaudí Awards and a Special Mention at the Locarno Film Festival and a Lifetime Achievement Award at the Malaga Film Festival in 2020 Speaking to Coinage in a recent interview Long shared her view on the SEC's recent approval of options on the BlackRock Bitcoin ETF and used it as a prime example of a phenomenon she’s been warning about for years: The entry of Wall Street into the crypto space comes with both opportunity and danger “It’s a double-edged sword,” Long said referencing the typical leverage games that Wall Street is so adept at playing “They privatize profits and socialize losses.” It’s a dynamic that anyone familiar with traditional finance knows all too well and it’s one that has reared its head time and time again whether in traditional equity markets or the now-infamous crypto exchange collapses like FTX The approval of options on the BlackRock ETF opens up a new dimension of financial engineering that could easily introduce leverage into Bitcoin’s price in ways we haven’t seen before And then an option on an ETF is a derivative on a derivative.” It’s a classic case of stacking financial products on top of each other until the structure becomes dangerously fragile The issue with such layered financial products is that they can create feedback loops between the derivative price and the underlying spot price “There’s a lot of leverage on the derivative itself and there’s even more coming now with options,” she continued One of the key factors driving this dynamic is the speed at which ETF products now need to interact with the underlying market infrastructure. Caitlin pointed to an amendment to the BlackRock ETF that has forced Coinbase into 12-hour turnaround times for delivering Bitcoin. “Coinbase is being forced by Wall Street dynamics into a different dynamic than the underlying spot market had developed for Coinbase,” she said. This shift toward faster turnaround times means that more trading activity is happening off-chain, which creates a host of new issues. “It just creates problems,” she explained. “This gets back to the whole discussion of intermediaries proving their reserves to show they are one-for-one backed.” For now, Caitlin and others in the space are watching closely to see how the dynamics of the ETF and options markets play out. Whether the addition of these new products will bring stability and liquidity or trigger a new wave of volatility remains an open question. But one thing is clear: as Wall Street deepens its involvement in Bitcoin, the stakes are getting higher. By Coinage is the first community-owned media outlet telling the story of crypto Custodia Bank founder Caitlin Long hopes a new lawsuit would unearth more details on debanking under former President Joe Biden’s regime The Trump Organization has sued Capital One Bank for allegedly closing over 300 bank accounts in 2021 “without cause” as tech bigwigs and crypto leaders lamented the debanking crisis during previous administrations Today, the Trump Organization filed a lawsuit in Miami-Dade County against @CapitalOne to hold the bank accountable for their egregious conduct in unjustifiably terminating over 300 of the company’s bank accounts without cause Long’s Custodia Bank and other top crypto voices like Castle Island Ventures partner Nic Carter have often pointed to Operation Choke Point 2.0 a coordinated clandestine effort by regulators like the Federal Deposit Insurance Corporation to block digital asset companies from banking services Silicon Valley businesses decried similar circumstances attributing the pattern to political targeting and a war against certain tech-heavy firms “The actions taken by Capital One and other major financial institutions represent a dangerous precedent that could threaten the operations of countless businesses across the nation particularly those with a strong and independent voice.” The Trump Org lawsuit comes when tech entrepreneurs and crypto top shots have sought answers about debanking. Lawmakers have held at least one hearing on the matter, and Federal Reserve chair Jerome Powell pledged to aid the anti-debanking effort Republican Senator Cynthia Lummis from Wyoming threatened federal prosecution against FDIC staffers reportedly destroying evidence related to OCP 2.0 and debanking While the Capital One lawsuit doesn’t seem directly crypto-linked Long believes the move may shed light on a broader malpractice from U.S crypto debanking enquiries have focused on institutions regulated by the FDIC and the Fed The Trump Org lawsuit could widen the scope to include potential bad faith oversight from the Office of the Comptroller of the Currency Long argued on X in response to the Capital One complaint according to Custodia Bank CEO Caitlin Long In a Roundtable discussion with TheStreet’s Rob Nelson Long pointed out that for the first time in a long while Bitcoin is trading more like gold than a tech stock “Bitcoin’s correlation is higher with gold in the last two days than it is with the Nasdaq,” she said Bitcoin traded like a high vol Nasdaq stock and gold was quietly marching up and had outperformed Bitcoin year to date.” The shift comes amid broader market volatility Stocks dropped sharply while bonds rallied — a decoupling that Long said we haven’t seen since COVID-era disruptions She traced the cause to deliberate actions from U.S “The Treasury Department wanted exactly this They aren’t as focused on the stock market as they are focused on getting interest rates down… to heal the banking system to create more refi opportunities in the mortgage market government with this wall of refinancing of Treasury debt.” who has long warned of systemic fragility in traditional finance said the current move is risky but not yet disastrous “Is it risky what they’re doing Yes… But we’re not there yet just because we’ve had a 5% one-day correction.” She also noted that Bitcoin’s four-year halving cycle remains intact It has to do with the profitability of miners Bitcoin halving is a scheduled event that occurs roughly every four years cutting the reward miners receive for adding new blocks to the blockchain by 50% This process reduces the rate at which new bitcoins are created Halvings are seen as pivotal for Bitcoin’s price and supply dynamics While she declined to offer a direct price prediction Long added that Bitcoin’s behavior now reflects traders “looking for insurance” amid rising fears of instability Custodia Bank is a Wyoming-based digital asset bank founded by Caitlin Long It focuses on bridging traditional finance and crypto by offering compliant custody and payment solutions for digital assets The bank is known for pushing regulatory clarity in the crypto-banking sector Wyoming-based crypto bank announced on its website Wednesday that it would further reduce its operations and preserve capital "in anticipation of major crypto policy reforms." The move was voted on by the bank's board of directors earlier this week.  Custodia said that the pullback will help it keep its special purpose depository institution charter in the state as well as the interface software for its real-time payments and bitcoin custody products The bank said it is also looking to protect a patent on bank-issued stablecoins and its "clean compliance and operating record." the shift enables it to continue as a going concern but one with little — if any — day-to-day business operations The decision to hunker down comes less than two weeks after Custodia lost its banking partner — a critical blow to the firm, which cannot directly transact with other banking institutions. Custodia founder and CEO Caitlin Long announced the development on Nov Long said Custodia was "debanked" as a result of what she and others in the crypto space refer to as "Operation Chokepoint 2.0," a shorthand expression for the Biden administration's oppositional approach to digital assets that references an Obama-era scandal in which bank regulators and the Justice Department pressured banks not to serve arms dealers payday lenders and other unsavory but legal businesses Long noted that this is not the first time a bank has dropped Custodia because of governmental scrutiny nor did she clarify which bank it had been partnering with Cryptocurrency Trump's crypto push changes the game for banks November 12 2024 10:00 AM Long issued a written statement about the developments on Wednesday saying the bank will continue on in whatever way it can "I'm incredibly proud of the Custodia team and our resilience in the face of repeated debankings due to no fault of our own," Long said "I especially thank Custodia's customers and shareholders who have helped us continue the fight for durability of banking access for the law-abiding U.S As both a candidate and president-elect, Donald Trump has praised crypto as an area with significant growth potential and said he would implement policies to make the U.S He has also pledged to install regulators who "love" the technology It is unclear what the change of administration will mean for Custodia's litigation with the Fed Court of Appeals for the 10th Circuit as the bank looks to reverse a lower court ruling in favor of the central bank Oral arguments in the lawsuit are scheduled to take place on Jan Custodia Bank is venturing into the stablecoin business On Tuesday, March 25, Custodia Bank disclosed that it had collaborated with Vantage Bank to tokenize U.S making the token “Avit” the first-ever U.S bank-issued stablecoin on a permissionless blockchain Custodia asserts that the product complies with all relevant anti-money laundering and sanctions regulations Commenting on the development, Custodia Bank founder and CEO Caitlin Long stressed that Avit opened the door for legacy finance to benefit from blockchain technology’s global and programmable nature within the banking system something she asserts was not previously possible — Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) March 25, 2025 She argued that unlike other stablecoins classified by the Federal Reserve as synthetic dollars Avit represented “real dollars” as it was issued by a bank authorized to take demand deposits will likely lower the barriers to entry for traditional finance (TradFi) it is not Avit’s blockchain adoption potential that has caught the attention of crypto natives The situation was made even more ironical as Custodia seemed to shy away from mentioning Ethereum in their announcement with some poking the crypto bank to “say Ethereum.” Say Ethereum https://t.co/EyUljDud3w — Alex.eth 🇺🇸 🛡️ (@AlexanderFisher) March 25, 2025 Even VanEck’s Head of Digital Assets Research humorously “fixing” the Custodia announcement headline to: “Bitcoin Maxi Issues Stablecoin on Ethereum.” Bitcoin Maxi Issues Stablecoin on Ethereum https://t.co/2zah0EGXOg pic.twitter.com/2MjLS54fDt — matthew sigel, recovering CFA (@matthew_sigel) March 25, 2025 Custodia’s recent venture comes as the Trump administration is pushing for stablecoin regulations before the end of the year In line with this push, the Senate Banking Committee recently passed the Guiding and Establishing National Innovation for U.S Stablecoins (GENIUS) Act to a full Senate vote DisClamier: This content is informational and should not be considered financial advice The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion Readers are encouraged to do thorough research before making any investment decisions The Crypto Basic is not responsible for any financial losses Copyright ©The Crypto Basic Treasury Department and the Federal Reserve — and crypto banking is right at the center of it most mainstream banks won't do anything involving your crypto side of your portfolio,” said Roundtable host Rob Long was quick to explain why: “That’s Operation Choke Point 2.0,” she said blaming adverse SEC accounting guidance (SAB 121) for freezing out crypto “That was designed to throw sand in the wheels of the crypto industry by keeping the banks out.” While she said the policy has already been addressed at agencies like the SEC she called the Federal Reserve the “one big laggard” — and warned of a brewing fight “I think there’s a big fight that is setting up between Trump and Secretary of the Treasury Bessant versus the Federal Reserve over exactly this issue.” ‘We're going to leave the Fed alone regarding monetary policy There are too many regulators,’” she recalled noting Bessant’s intention to “consolidate bank regulation and put it into politically accountable organizations.” That includes ideas like Trump’s proposed Strategic Bitcoin Reserve, which would be housed at the Treasury — not the Fed “The Fed isn’t chartered to have a strategic reserve of a cryptocurrency,” Long said recalling Powell’s reaction: “Please don’t give it to us.” She described how the Fed and Treasury “have historically had frictions even when they’ve been friendly with common staffers.” But under Trump “Some of the people being confirmed are very critical of the Fed,” she added Long even hinted at a potential executive order from Trump that could require the Fed to grant long-denied access to banks like Custodia “I don’t know if that’s true,” she said “but it all does jive with the breadcrumbs.. Bitcoin has started to turn things around after a lackluster start to 2025 Following a series of all-time highs on the back of Trump’s No.. Vitalik Buterin is calling again for Ethereum to stop reinventing the wheel across every layer of its architecture Cardano (ADA) is stress-testing its next-generation protocol with what its founder Charles Hoskinson calls the “Face Melting Net” Imagine having more money than an entire country’s GDP (at least a small country) That’s the reality for many family offices in Dubai Canary Capital has filed an S-1 registration with the US Securities and Exchange Commission (SEC) for what could be the first spot exchange-.. Crypto News Australia provides you with the most relevant Bitcoin Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. Crypto News Australia is a news service that adheres to its Editorial Policy Crypto News Australia are a subsidiary of Swyftx Pty Ltd which operates a cryptocurrency exchange in Australia and New Zealand Our website is purely informational and provides news about cryptocurrency & blockchain The information on Crypto News Australia should not be taken as financial advice investment advice or a personal recommendation Buying and trading cryptocurrencies is a high-risk activity Please do your own due diligence before making any investment decisions in connection to the use or reliance of any content you read on this or any affiliated website Yesterday the US Congressional Research Service (CRS) published a paper about policy issues relating to the Federal Reserve Around one fifth of the document covered crypto and digital currency topics It outlined a number of policy questions that Congress might wish to consider Two related questions were: “Should crypto firms and other nontraditional firms with federal or state bank charters be granted direct access to the Fed’s discount window and master accounts Should Congress determine who gets access through legislation or defer to the Fed?” The Congressional Research Service is a non partisan government organization it doesn’t propose policy but outlines topics that Congress might wish to consider The question regarding master accounts follows the legal battle between Custodia Bank and the Federal Reserve after the Fed first delayed a response and then refused a master account Custodia Bank never planned to grant loans so deposits would be backed one for one and therefore it did not seek FDIC insurance The paper quotes the Fed in its refusal as saying “[T]he future earnings prospects of the business model that Custodia has proposed—that is crypto-asset-focused business model featuring a number of novel and untested activities posing heightened risks – is inconsistent with approval.” Despite the paper questioning whether the choice should be taken away from the Fed it also refers to a District Court ruling against Custodia: “[U]nless the Federal Reserve Banks possess discretion to deny or reject a master account application state chartering laws would be the only layer of insulation for the U.S one can readily foresee a ‘race to the bottom’ among states and politicians to attract business by reducing state chartering burdens through lax legislation…. States lack not only the mission but also the resources to protect national interests.” The paper also covered three other topics: The paper observes that bank engagement with crypto faces a two-pronged test: The authors note that “Federal banking regulators have significant discretion over both findings and their interpretation has changed under different leadership.” banks needed to demonstrate activities were safe and sound whereas the Biden leadership imposed case-by-case approval Eventually the Fed stated that banks are ‘presumptively prohibited’ from holding crypto as principal as it does not believe they can do so in a safe and sound manner Moving on, there’s been much discussion about the de-banking of the crypto sector which was touched upon briefly and is now subject to Congressional hearings Some of the questions it poses to Congress include: That last point is saying if banks were allowed to engage with crypto on their own behalf (rather than just for clients) given the potential for an adverse knock on effect to the bank as a whole Unfortunately the paper’s coverage of CBDC failed to distinguish between wholesale and retail CBDC at all wholesale CBDC could be beneficial to the banking sector without raising the privacy concerns relating to retail CBDC The paper also noted President Trump’s executive order to terminate work on a CBDC the Federal Reserve is supposedly an independent agency “CRS (Congressional Research Services) cannot locate any statement from the Fed on whether it intends to terminate its research in response to the executive order Congress might choose to legislate in order to either explicitly authorize or mandate the Fed to create a CBDC and shape its features.” the paper notes that banks were allowed to get involved provided they do so in a safe and sound manner “generally believes that issuing tokens on open or similar systems is highly likely to be inconsistent with safe and sound banking practices.” The authors highlight that the net effect is to prevent banks from getting involved in stablecoin issuance While they note that banks can participate in tokenized deposits they don’t mention that this has also been patchy with multiple initiatives blocked under the Biden administration they ask whether stablecoins should have FDIC insurance The questions they ask for stablecoins include: Two banks have collaborated to tokenize U.S dollar demand deposits on a permissionless public blockchain for the first time in the United States Wyoming-based digital asset bank Custodia Bank and Texas community bank which has been a longtime ambition of Custodia The transaction took place in eight stages and complied with all regulatory requirements and the Treasury Department’s Office of Foreign Assets Control […] Custodia looks forward to the reversal of U.S regulatory obstacles that have stymied stablecoin innovation in recent years,” Custodia Bank CEO Caitlin Long said in a statement “@custodiabank & @Vantage_Bank just opened the door for #tradfi users that want to benefit from the global network effects of permissionless blockchains + low transaction costs programmability & auditability *inside* the US banking system.”  The method of tokenization was patented by Custodia Bank in 2022 Custodia Bank managed issuance and redemption monitoring and reconciliation using its Avit Management System Vantage Bank is headquartered in San Antonio and has 23 branch offices in the state and deposits totaling $4 billion It managed the fiat reserves and provided Fedwire/ACH transfer services The customer transferred its Avit tokens into self-custody transacted with those tokens outside the banking system and then transferred its Avit tokens back to Custodia Bank for redemption as U.S All of the activities took place on the Ethereum mainnet using the ERC-20 standard The issuance of Avit required different documentation and procedures from other stablecoin issuers and the banks worked closely with their respective regulators on them Custodia Bank was chartered by the Wyoming State Banking Board as a special-purpose depository institution in 2020 not fractionally reserved at 10% as is typical for banks The bank was originally called Avanti Bank Avit was part of its business plan from its inception the bank called Avit a “stablecoin disruptor.” Avit is backed by demand deposits The Federal Reserve Board denied Custodia Bank membership in the Federal Reserve system in January 2023 the bank was unable to carry out several important functions The Fed said Custodia Bank sought to engage “in novel and untested crypto activities that include issuing a crypto asset on open and/or decentralized networks.” It considered the bank’s plans risky Cryptopolitan Academy: Want to grow your money in 2025 Learn how to do it with DeFi in our upcoming webclass and trading strategies are provided by the third-party provider and the point of view is based on the independent assessment and judgement of the analyst without considering the investment objectives and financial situation of the investors Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage The vast majority of retail investor accounts lose money when trading CFDs You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Please refer to our Risk Disclosure Statement and Terms & Conditions so as to have a better understanding over the risks involved before you start trading Mitrade is the brand name of Mitrade EU Limited (the “Company”) an investment firm authorised and regulated by the Cyprus Securities and Exchange Commission with license number 438/23 and situated at Spyrou Kyprianou 79 The content of this website is not intended for residents of Belgium the United States or any person in any country outside the EEA or a jurisdiction where its distribution or use would contravene with local laws and regulations READ MONOGRAPH ECIJA‘s Media Team has played a crucial role in providing legal advisory services for two major audiovisual productions: the Disney+ series “Custodia Repartida” and the feature film “Mala Influencia.” directed by Javier Fesser and featuring Ricard Farré Alejandro Díaz and Jaime Velasco ensured the legal compliance of all production elements from technical-artist contracts to rights clearance directed by Chloé Wallace and based on a Wattpad literary hit ECIJA has also advised Nadie Es Perfecto with a team led by partner Elena Ordúñez and lawyers Alejandro Díaz accompanying in all matters relating to audiovisual production in the hiring of its technical-artistic staff or in relation to the application for general project aid from the Instituto de la Cinematografía y de las Artes Audiovisuales for the project New leadership appointed to ICC competition commission KGSA appoints Manuel de Carvalho as partner and… It represents the main source of information in the legal business sector in Spain and Portugal The digital magazine – and its portal – address to the protagonists of law firms and in-house lawyers The magazine is available for free on the website and on Google Play and App Store information about deals and their advisors For further information, please visit the Group’s website www.lcpublishinggroup.com Your Ads Privacy ChoicesIMDb, an Amazon company© 1990-2025 by IMDb.com, Inc. To find the right partner to work with and buy and sell lots of wine But that is a lot easier said than done and the average wine buyer and importer will have to taste through a lot of wines and talk to a lot of producers before they find the ones that are right for them The Buyer’s Case initiative hopes to help in a number of ways Give busy buyers the chance to taste wines from a premium focused producer serious about wanting to do business in the UK Whilst at the same time share the steps they go through in order to decide which wines they may Steps other producers can read and learn from when pitching their wines either directly to them or other importers with similar buying needs It also provides the platform for a producer and put their wines directly in the hands of buyers they would most like to taste their wines Crucially there are no obligations on either side of the fence The buyers do not have to take on any of the wines they say they would And the producer can determine which is the right potential partner to work with - if at all The Buyer’s Case is designed to give producers honest feedback from professional buyers best placed to tell them where their wines might sit in the UK market For even if the wines may not be suitable for them they can offer advice where they might want to focus their efforts The main objective is to give the participating wine producer invaluable advice on how suitable their wines are for the competitive UK market A chance to bring them closer to the key decision makers and buyers across the premium on-trade and independent sectors Terre de la Custodia has both DOC and DOCG vineyards in the heart of Italy’s Umbria and owned and run by the Farchioni family was best known for its extra virgin oil and flour It is now one of the region’s premium wine producers with 180 hectares of both DOC and DOCG vineyards all focused around producing red and white wines for the Terre de la Custodia premium wine brand Here the focus is on combining “ancient craftsmanship with the most advanced winemaking technologies” The recently two floor winery is based in Gualdo Cattaneo surrounded by many of the estate’s vineyards It includes the temperature controlled tank and oak barrel rooms along with its important drying room where selected grapes and branches are brought to control drying for many of the red cuvees It follows strict procedures and processes to: limit greenhouse gas emissions; water supply; assess soil compaction; help generate organic matter and biodiversity; and does not use agropharmaceuticals Its wines are made across the following DOC and DOCG wine production areas which include: The wines it wanted to show the buyers that best demonstrate the range of what it can offer: Tenuta Torrececconia Blanco Umbria IGT 2023 12.5% Trebbiano and other Umbrian approved white grape varieties from the area of Torrececcona di Todi-Gualdo Cattaneo at up to 400m Vineyard age of 10 to 16 years from medium and clay soils Montefalco Grechetto Vino Montefalco DOC 2023 13% Produced in Montefalco from 100% Grechetto this comes from 16 year-old five hectares of vines in medium clay soils Fermented and aged in steel and wood and then in bottle Produced in Gualdo Cattaneo using a blend of local white grape varieties from a 3 hectare 12 year plot at up to 350m Sericum Rosso di Montefalco di Montefalco DOC 14.5% Made from Sangiovese and other permitted Umbrian red grape varieties from a 20 hectare site in Giano dell’ Umbria at up 350m from 15 year old vines Light and clay soils and fermented in steel and aged in bottle Maior Montefalco Sagrantino DOCG Rosso 2019 15% Produced in La Palombara Gualdo Cattaneo from a 22 hectare Fermented in steel and aged for 18 months in barrique and six months in bottle Exubera Montefalco Sagrantino DOCG Rosso 2016 15% Made in La Palome this 100% Sagrantino wine comes from two hectare 20 year-old vineyard at 350m on rich clay soils Fermented in steel aged in barriques and tonneaux for 18 to 24 months and then in bottle for 12 months To help assess and determine how suitable the wines from Terre de la Custodia are for the UK market The Buyer was able to recruit four leading buyers who offer different backgrounds and routes to market Gary Keller has recently set up his own commercial drinks consultancy where he hopes to share his 15 years experience working in senior buying roles at Molson Coors Vastly experienced and highly respected senior wine buyer who has worked across a number of major businesses Enotria&Coe and most recently as wine and drinks director at Molson Coors he is now founder of Keller’s Cellar his new commercial drinks consultancy that hopes to work with drinks companies to improve their business performance and work on future growth strategies Harry Crowther has extensive buying experience and now heads up wine buying for Good Pair Days in the UK Highly experienced and respected wine buyer who has worked across all channels of the trade as a top sommelier and restaurant buyer at high profile venues such as Sketch in specialist retailing at Hedonism and is now head of wine buying in the UK for online retailer Michael Karam is working with Harry Hunt on their new wine business H&K Wine Agencies Michael Karam is an award-winning journalist covering news food and drink and is a widely respected expert on Lebanese wine before returning to the UK in 2014 to focus on a wider wine writing and consultancy career and has now set up H&K Wine Agencies with Harry Hunt Each of the buyers were asked to taste and assess each of the six wines in turn and answer a series of questions about how and where they see them sitting in the UK market thank you for inviting me to take part in this Buyer’s Case as I embark on my journey with Keller’s Cellar I had the pleasure of meeting some of the team behind Terre de la Custodia (Marco and Cecilia) at the London SITT tasting to understand more about their winery their passion for these lesser-known regional Italian wines and taste through their full range in advance of writing up my feedback on the selection I received Gary Keller was impressed overall by the range of Terre de la Custodia wines I was able to share the white wines to complement a six-course pescatarian tasting menu to celebrate my daughter’s 18th birthday – this was a real treat for her The wines all complemented the dishes which included sushi bream and the fabulous main course of lobster and king prawn risotto Reds were tasted the next day to give them the focus and attention they needed From both the tasting at SITT and sitting down to re-taste the selection sent I have been mightily impressed with the wines They are well packaged across the range from entry to premium and the quality of the winemaking has stood up to their instant appeal For me it has been a while since I last tasted wines from these regions and I will undoubtedly order Montefalco DOC and DOCG again in the future if these wines are a good representation for the region My personal favourites were the Montefalco DOC Grechetto in the whites and Sericum Montefalco DOC and Maior Montefalco DOCG in the reds with my family choosing the Grechetto as there favourite these wines would be suitable for hotel and restaurants across the on-trade and great options for independent wine merchants The entry level Umbria IGT Tenuta Torrececcona may extend beyond this into pubs with good wine lists given they offer outstanding value for money and would be lovely if offered by the glass I would say that I would be happy to sell these wines here in the UK as they are diverse great examples of their region and at each price level have quality throughout zesty little number is a real crowd pleaser of a wine The lees ageing and subsequent two months resting in bottle provides some depth to the wine and a delightful minerality throughout lime and a lovely acidity on the finish means this wine over delivers for the price point and would offer a great option by the glass across the on-trade overly high in acidity and also conversely when old can become a bit too plump and lacking freshness the wine was also delicious offering an abundance of stone fruit succulent minerality and a generous dollop of spiced fruit The four months spent ageing on lees and further 2 developing in bottle show the producer is releasing this at the right time for drinking and enjoying to its max super soft mouthfeel and super with seafood A wine made for dining in the on-trade and definitely one to look out for in your local wine specialist shop meaning ‘Prestige’ steps up from the Grechetto DOC I believe the wine is also unoaked but aged for 12 months in the bottle before release This wine paired really well with our lobster and king prawn risotto standing up to the food’s rich creamy texture I would be interested to taste this against the 2019 and 2021 vintages to see how they compare I wonder if this wine might be better drunk younger but keen to compare before making a judgement This is a wine of high quality and would compete well on a restaurant wine list and against competitors in the £15-£20 space in a wine merchant I was a bit apprehensive that they may be bitterly tannic my preconceptions were misguided and upon tasting Sericum I was astounded by its freshness and its ability to feel relatively lighter in mouthfeel than it’s 14.5% led you to believe This is probably driven by being fairly young with ageing potential up to 2027 bursting with juicy black cherries and lush spices meant this wine offers much to Malbec lovers seeking an adventurous alternative We really enjoyed this and would definitely buy a bottle for drinking at home A premium by the glass option for restaurants and a great value alternative to Malbecs for wine specialist shops This wine definitely lives up to its billing Eighteen months barrique ageing and a further six months in bottle make for an absolute super star of a wine The winemaking has been top drawer and yes it will appeal to those wanting a blockbuster red but will also please drinkers looking for something different elegant tannins mean this wine is perfect for those dark cosying up with a glass of red and yet would equally stand up and pair well to the most rich foods like game and red meat and should the easement band be maintained it will add to its price vs wines at 14.5% on shelf pushing it into the £15-£20 section I would absolutely still recommend buying it Would be great on a hotel and restaurant menu too To sum this wine up Exubera is Maior with extra power It’s like the winemaker has turned the volume up at every stage to make a rock star of a wine generosity of flavour and powerful body would all represent this massive wine However if you love Amarone or appassimento wines or have occasionally enjoyed a bottle of 19 Crimes mid week This may price itself out of hitting the wine specialist shelves but may find a spot on restaurant menu where cooking over a barbecue or a speciality across red meats is the focus leg of lamb and duck whilst would work well as part of a taster menu wine selection Michael Karam thought the Terre de la Custodia wines could work in either the on or off-trade A blend of classical and contemporary and very contemporary serious but not gimmicky wines that would work in both the on and off-trade channels The reds will appeal to consumers weaned on New World extracted styles with good oak integration Avid readers of the ABV percentage might arch an eyebrow but you can’t please everyone and where the alcohol is quite punchy it is always well-integrated but ‘Brand Italy’ will probably carry it over the line All three are good independent merchant wines The whites were correct and nothing to fault them but there is not an abundance of character or generosity Grechetto (and even Trebbiano) isn’t well known and that will affect the commercial appeal good on-trade wines with the opportunity for healthy margin on a list The packaging and labels are all fine apart from The Exubera which is the anomaly The wine is stunning but the ‘immature’ label lets it down. Tenuta Torrececconia Blanco Umbria IGT 2023 Citrus personality with not much else but at this price point it ticks all the boxes It has (decent) house white written all over it Packaging is classical and bland but would suit a multiple or a wine list Montefalco Grechetto Vino Montefalco DOC 2023 More elegant offering than the first white wine Price presents excellent value for the on-trade All in all not bad for a grape that is mainly seen as a blending variety in the mouth the wine is creamy and textured A wine that can straddle the aperitif and food worlds although too classy to be glugged by the pool Needs to be more specific about which “native grapes” are actually used in the blend Michael Karam gets down to the business of tasting and assessing the Terre de la Custodia wines Sericum Rosso di Montefalco di Montefalco DOC Sangiovese with an uncredited supporting cast The result is a lovely red fruit expression with violets and pepper Needed time to open up but didn’t disappoint not much to write about but after 24 hours a sliver of evolution created a decent slug of complexity On the money.Would work well in the on and off-trade but this is a iron fist in a velvet glove and it is all down to the beautiful balance of all the factors – acidity tannins oak management and of course the ABV Tenuta Torrececconia Blanco dell'Umbria IGT 2023Floral and fruity nose Commercially might be worthwhile dropping the cork lightening the bottle and coming around €2.2 which will make this a real winner.Montefalco Grechetto vino Montefalco Grechetto Blanco DOC 2023 more concentrated orange blossom with traditional rusticity of Italian whites on the nose Hint of fennel and white spice on the nose as well Umbria IGT Sangiovese Vino Rosso Sangiovese ripe on the nose without being exciting – its perfectly acceptable.Simple there’s more quality in the selection.Sericum Rosso di Montefalco di Montefalco DOC Crunchy blackfruits and dried herbs on the nose floral and elegenant with well defined fruit good body – the alcohol does stick out on the finish.A little too big and too alcoholic for my palate.Maior Montefalco Sagrantino Montefalco Sagrantino DOCG 2019 Absoloutely delightful nose which reminds me of rustic old school chianti salami integrated oak and just divine on the nose.Soft generous fruit with gamey notes offering complexity it wears in better than the previous one.Long and complex finish I would purchase this is the pricing was right.Exubera Montefalco Sagrantino DOCG 2016 more polished style which is not my style but I understand what market this is aiming for Can compete with Super Tuscans on the nose Tenuta Torrececconia Blanco Umbria IGT 2023 The packaging is lean It would be a good wine for the on-trade and with the right food pairing but by bottle rather than by the glass There is some attractive orange peel and subtle tone fruit character The price point is good and there is good fruit here for the money that would benefit from a bit more freshness and acidity There is some good fruit here and nice floral appeal There is a fair amount of wine here for the money particularly with a bit more acidity and freshness This is a wine for the on-trade as the oak element lends to gastronomy I think there is some texture and appeal to certain palates here and would benefit from more modern packaging I tend to get this level of concentration from Trebbiano Spoletino It is premium price point and there is richness and texture to back it up with a good finish and would work better with more modern packaging It’s a wine for the premium on-trade and would do well by the glass in a restaurant with a tasting menu and the right dish This wine’s opulent style would make it a crowd pleaser in a specialist wine store capable on handling the higher price I am not sure I could place this wine if I tasted it blind so would like to see a bit more terror and typicity some rustic Italian charm here which is par for the course with Sagrantino with its ripping tannins The cost price is about right for DOCG Sagrantino I haven’t seen many cheaper so I think the price is about right It would need to be a hands sell in the on-trade but would work well with a big old steak and after a long decant I would like to see more more neutral oak used and perhaps earlier picking for acidity and flavour The price is on the high side considering its packaging * You can find out more about Terre de la Custodia wines at its website here. The Buyer TVClick below to watch The Buyer's library of online debates, videos and webinars. Please enable JS and disable any ad blocker 2024 5:54 PM EDTCustodia Bank’s Caitlin Long has often repeated the phrase "a fool and their leveraged bitcoin are soon parted." And there isn't a shortage of examples to point to in crypto where excessive leverage has ended terribly On the sidelines of the Bitcoin Conference Roundtable anchor Rob Nelson and Custodia Bank’s Founder and CEO Caitlin Long delved into the nuances of bitcoin and leverage offering insights into this evolving financial landscape Nelson kicked off the conversation by sharing his personal experience highlighting how he keeps a significant portion of his risk portfolio in bitcoin He emphasized the value of holding onto the asset while exploring ways to leverage it without losing its growth potential Nelson likened his bitcoin investment to a locked-up vault that continues to grow in value pondering over the potential of using it as collateral instead of selling it off Caitlin Long provided clarity on the concept of leveraging distinguishing between using bitcoin as collateral and going beyond a one-to-one leverage ratio She explained that leveraging becomes risky when it exceeds 100% Long suggested that leveraging bitcoin up to 50% of its collateral value is a safer approach akin to taking a loan against a house without selling parts of it This method allows investors to retain the growth of their bitcoin while borrowing against its value led to significant losses due to excessive leverage Long emphasized that these platforms’ high yields were unsustainable as they relied on leveraging beyond the actual value of the bitcoin similar to the way some banks operate with traditional assets Long elaborated on the broader banking system's reliance on leverage explaining how banks make profits by borrowing at low short-term interest rates and lending at higher long-term rates contrasts with bitcoin’s disinflationary nature bitcoin’s supply growth decreases over time Nelson expressed curiosity about the future of bitcoin halvings and their impact on the asset’s value Long acknowledged the uncertainties but remained optimistic pointing out that macro factors such as regulatory policies and Wall Street’s involvement could significantly influence bitcoin’s trajectory She warned that excessive leveraging by traditional financial institutions could pose risks where claims vastly exceed actual gold reserves TronWeekly October 29, 2024 by Elon Musk’s rеcеnt proposаl to slаsh аt lеаst $2 trillion from thе U.S. fеdеrаl budgеt hаs gаrnеrеd significаnt аttеntion, including from thе cryptocurrеncy industry. Cаitlin Long, CEO of Custodiа Bаnk, а finаnciаl institution focusеd on sеrving crypto businеssеs, took to sociаl mеdiа on Octobеr 28th to shаrе hеr thoughts on thе proposеd Dеpаrtmеnt of Govеrnmеnt Efficiеncy (DOGE) Long еxprеssеd optimism аbout DOGE’s potеntiаl but еmphаsizеd thе nееd for swift аction “Thе rеgulаtory аbusе hаs bееn stаggеring,” shе stаtеd highlighting thе burdеn plаcеd on businеssеs likе Custodiа by еxcеssivе rеgulаtions Rеcognizing thе upcoming 2026 US Sеnаtе еlеctions аnd thе potеntiаl for а Dеmocrаtic mаjority Long urgеd thе DOGE tеаm to “movе fаst” to еstаblish lаsting rеforms thаt wouldn’t bе еаsily rеvеrsеd by futurе аdministrаtions Long аlso cаutionеd аbout а potеntiаl downsidе of аggrеssivе spеnding cuts – еconomic dеprеssion govеrnmеnt’s spеnding currеntly аccounts for а significаnt portion of thе GDP (Gross Domеstic Product) аnd а shаrp rеduction could lеаd to а slowdown Long аrguеs thаt thе currеnt focus on GDP growth аs а primаry еconomic mеtric is flаwеd “It’s thе wrong mеаsurе & thеy’ll nееd to еxplаin why,” Long аssеrtеd Shе proposеs а shift towаrds mеаsuring “gross output,” which incorporаtеs businеss-to-businеss (B2B) or supply chаin spеnding offеring а morе comprеhеnsivе picturе of еconomic аctivity “Cutting govt spеnding will by dеf’n cut GDP,” Long аcknowlеdgеd “but MORE IMPORTANTLY аs cаpitаl & jobs аrе rеdеployеd to thе privаtе sеctor B2B аctivity will grow & thаt’s whеrе thе rеаl growth is!” Thе rеcеnt dеvеlopmеnts surrounding Musk аnd DOGE hаvе coincidеd with а positivе pricе movеmеnt for Dogecoin Thе cryptocurrеncy hаs surgеd by аpproximаtеly 7% in thе lаst 24 hours This risе is pаrt of а lаrgеr 14.65% rеbound following thе formаtion of а “goldеn cross” on its dаily chаrt Tеchnicаl аnаlysts considеr thе goldеn cross а bullish signаl indicаting а potеntiаl shift in momеntum from а downtrеnd to аn uptrеnd Dogеcoin’s 50-dаy moving аvеrаgе (EMA) crossеd аbovе its 200-dаy EMA on Octobеr 25th Thе аbility of Dogecoin to hold аbovе its currеnt support lеvеl of $0.141 will bе cruciаl in dеtеrmining its futurе pricе dirеction trаdеrs might sее а furthеr climb towаrds thе $0.156 аnd $0.171 rеsistаncе lеvеls in Novеmbеr а drop bеlow $0.141 could lеаd to а dеclinе towаrds thе аscеnding trеndlinе support аround $0.122 Related Readings | Dogecoin’s Hidden Bullish Signals: Is a 400% Surge Possible? Filed Under: News Tagged With: , , Federal Reserve has slapped down a crypto-friendly bank in Texas while other banks urged the Fed not to grant Wyoming’s crypto-friendly Custodia Bank access to the Fed’s master accounts On September 4, the Board of Governors of the Federal Reserve System issued a cease & desist order against the United Texas Bank (UTB) in Dallas The order followed an investigation by the Texas Department of Banking that began in May 2023 and “identified significant deficiencies in the Bank’s corporate governance and oversight by the Bank’s board of directors and senior management.” Said deficiencies were “related to foreign correspondent banking and virtual currency customers specifically risk management and compliance with applicable laws and regulations relating to anti-money laundering one of America’s largest money transfer businesses UTB was the settlement bank for Circle and MoneyGram as well as numerous other digital asset firms Custodia Bank CEO Caitlin Long tweeted her reaction to the UTB order Custodia is one of several crypto-focused entities that have been granted special-purpose depository institution (SPDI) status in Wyoming but no SPDI has yet been granted membership in the Federal Reserve System Access to the Fed’s master accounts would ensure that Custodia customers’ deposits are protected by the Federal Deposit Insurance Corporation (FDIC) The Fed’s January 2023 rejection of Custodia’s application singled out the bank’s desire to “engage in novel and untested crypto activities,” which the Fed believes present “significant safety and soundness risks” that “are highly likely to be inconsistent with safe and sound banking practices.” Custodia sued the Fed over delays in the Fed processing the bank’s application District Court for the District of Wyoming upheld the Fed’s rejection this spring Skavdahl rejected Custodia’s assertion that the rejection was arbitrary and capricious and ruled that Custodia was not automatically entitled to a master account based on its SPDI status The 11 banks also note Treasury’s warning that “novel business models can be especially susceptible to fraud or other criminal transactions.” The banks allow these risks to be “not specific to the crypto industry,” but the banks “have already seen how providing certain financial institutions with master accounts could facilitate money laundering and other illicit activities.” Custodia’s Long told DL News that the opposition briefs came as “no surprise” and confirmed Custodia’s belief that “both protectionist practices and regulatory capture exist in the banking industry.” Verrilli argued that there was “no legal basis for treating companies in the digital asset ecosystem as pariahs and forcing them to operate without access to the national banking system and the regulatory frameworks that govern it.” One wonders if there’s an Operation Choke Point 3.0 that cuts off the oxygen to the brains of high-priced attorneys once they cash some crypto checks… Watch: Breaking down solutions to blockchain regulation hurdles As the first media outlet to report on blockchain-powered applications and visionary leaders with access to emerging technological landscapes CoinGeek presents a unique perspective on blockchain emphasizing the BSV blockchain's robust enterprise utility and unbounded scalability as described by Satoshi Nakamoto in his 2008 Bitcoin white paper Mostly cloudy with a few scattered showers lingering overnight then some breaks of sun in the afternoon but still scattered showers or a t-storm although a stray shower can't entirely be ruled out Your browser is out of date and potentially vulnerable to security risks.We recommend switching to one of the following browsers: Get up-to-the-minute news sent straight to your device Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page.