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Recent efforts to \u201cdebank\u201d crypto firms in the US revealed a \u201cstaggering\u201d level of corruption among government officials, and the problem is not yet resolved, one banking executive said in a Feb. 27 interview during Bitcoin Investor Week.\u00a0<\/p>\n
\u201cThe magnitude of skullduggery that is happening in Washington D.C. is really incredible\u2026 and it\u2019s not over yet,\u201d Caitlin Long, Custodia Bank\u2019s founder and CEO, said during a panel at the event. \u00a0<\/p>\n
In 2023, the US Federal Reserve, which regulates banks, stymied Custodia\u2019s efforts to service crypto firms by denying the bank access to a master account, citing<\/a> Custodia\u2019s involvement in \u201ccrypto-asset-related activities.\u201d\u00a0<\/p>\n 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.\u00a0<\/p>\n Custodia Bank CEO Caitlin Long speaks at Bitcoin Investor Week. Source: Cointelegraph<\/em><\/p>\n<\/figcaption><\/figure>\n Related: <\/strong><\/em>FDIC releases 790 pages of crypto-related letters in regulatory pivot<\/strong><\/em><\/a><\/p>\n Industry outrage over alleged debanking reached a crescendo<\/a> when a June 2024 lawsuit spearheaded by \u200b\u200bCoinbase resulted in the release of letters showing US banking regulators asked certain financial institutions to \u201cpause\u201d crypto banking activities.<\/p>\n US President Donald Trump, who started his term on Jan. 20, has criticized the prior administration\u2019s approach to crypto-friendly banks and vowed to better integrate cryptocurrencies, including stablecoins, into the regulated financial system.\u00a0<\/p>\n