Fed Faces Three Lawsuits Over Fed Master Accounts, Crypto Community Reacts

Custodia Bank’s CEO, Caitlin Long, has unveiled a significant legal development involving the Federal Reserve. In a recent tweet, she announced that the Federal Reserve now faces three lawsuits over Fed master accounts, each in different circuits. This development could have profound implications for the banking and cryptocurrency industry.

In her tweet, Caitlin Long highlighted the unprecedented nature of the situation with three lawsuits in three different circuits. This legal action signifies a growing challenge to the Federal Reserve’s handling of master accounts, which are essential for financial institutions, including crypto banks like Custodia Bank.

John E. Deaton’s Perspective

Pro XRP lawyer John E. Deaton joined the conversation, expressing his concerns about government intrusion into the private lives of Americans. He pointed out that federal agencies, including the SEC, FBI, EPA, and Federal Reserve, have been expanding their authority unconstitutionally. Deaton emphasized the importance of financial freedom and the right to own legal assets without government interference.

Deaton referenced the SEC’s lawsuit against Ripple and its executives, which he believes was a broader attack on financial freedom. He sued the SEC on behalf of investors, users, and developers within the XRP ecosystem, arguing against the classification of XRP as illegal securities. This legal battle represents a larger struggle against government overreach.

Attack on Crypto

Deaton also highlighted the cases of Coinbase and Custodia Bank, both facing regulatory challenges. The SEC initially approved Coinbase’s IPO but later sued the company, aiming to shut down its business model, effectively advocating for a crypto ban in the U.S. This raises questions about limiting the freedom and choices of Americans in the cryptocurrency space.

Caitlin Long’s Custodia Bank was mentioned for its innovative concept of maintaining 100% reserves and eliminating fractional banking. This approach ensures that customers’ assets are always available, preventing the possibility of a bank run. Despite federal mandates requiring the Federal Reserve to grant Custodia Bank a Master Account, it was denied, leading to a legal battle that survived the government’s motion to dismiss.

The tweets underscore the individuals and companies, including Caitlin Long, Brian Armstrong, and others associated with Ripple, Coinbase, and Custodia Bank, as “Warriors for Freedom.” These entities are challenging government regulations and fighting for financial freedom. Deaton and others are also supporting these lawsuits to protect the fundamental freedoms at stake.

The convergence of multiple lawsuits challenging the Federal Reserve’s control over master accounts and the broader issue of government interference in the financial industry highlights the growing importance of these legal battles. The outcome could significantly impact the future of banking, cryptocurrency, and financial freedom in the United States.