Regulation
Custodia Bank Cuts Jobs Amid Biden’s Crypto Crackdown, Will Trump Ease Regulations?
Custodia Bank has announced layoffs due to financial pressures linked to the Joe Biden’s admin regulatory stance on digital assets. The bank will reduce its workforce by 25%, cutting nine positions out of 36, as it faces challenges in its legal battle with the Federal Reserve amid tough crypto regulations.
Custodia Bank Cuts Jobs Amid Biden’s Crypto Crackdown
According to Fox Business, Custodia Bank, a crypto-friendly bank, has announced the layoff of nine employees, representing 25% of its workforce. The bank’s decision comes as it struggles to secure a master account from the Federal Reserve, which is crucial for its operations.
Without this account, the bank is forced to conduct business through other institutions, leading to increased costs. The layoffs are part of the bank’s efforts to preserve capital as it continues its legal fight against the Federal Reserve.
The bank has attributed the need for these layoffs to the Biden administration’s intensified regulatory scrutiny on the crypto industry. Custodia Bank’s CEO, Caitlin Long, has pointed to what the industry has dubbed “Operation Chokepoint 2.0,” which she claims is a coordinated effort by the federal government to cut off crypto businesses from the traditional banking system. Despite the layoffs, the crypto-friendly bank has stated that its operations will continue as normal, and the recent developments will not impact its ongoing lawsuit against the Federal Reserve.
Regulatory Pressures Under the Biden Administration
The Joe Biden admin has taken a stringent approach to crypto regulations, with federal agencies, including the Federal Reserve, increasing oversight. Traditional banks have been cautioned against doing business with crypto firms, citing the volatility and regulatory uncertainties associated with digital assets.
Consequently, this has led to a challenging environment for crypto-focused institutions like Custodia Bank, which have found it increasingly difficult to access essential banking services.
Deputy Treasury Secretary Wally Adeyemo recently denied that there is a coordinated effort to undermine the crypto industry. However, reports suggest otherwise, with some claiming that their bank accounts have been terminated due to their involvement in crypto. This regulatory environment has as a result impacted smaller institutions, forcing them to take drastic measures such as layoffs to stay afloat.
Donald Trump’s Position on Crypto Regulations
As Custodia Bank and other crypto-related businesses face regulatory challenges, former President Donald Trump has positioned himself as a pro-crypto candidate in the upcoming presidential election. Trump, who once criticized cryptocurrencies, has since become an advocate for the industry. He has promised to make the U.S. a leader in cryptocurrency and has hinted at easing regulations if elected.
Moreover, Trump’s son, Eric Trump, has made moves in the crypto space, leading the development of a new project called World Liberty Financial. This initiative aims to provide financial services outside the traditional banking system, potentially offering loans based on decentralized finance (DeFi) principles. Eric Trump has expressed his enthusiasm for the project, suggesting that it could revolutionize access to financial services in the U.S.
Consequently, Donald Trump’s recent statements suggest that his administration would adopt a more favorable stance toward the crypto industry, in stark contrast to the current regulatory approach under the Joe Biden admin. This has sparked interest among crypto enthusiasts, who see Trump as a potential ally in their fight against stringent regulations.
Kelvin Munene Murithi
Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cardano founder Charles Hoskinson has hinted at a potential collaboration with Ripple, sparking excitement across the crypto community.
In a recent post on X (formerly Twitter), Hoskinson praised Ripple CEO Brad Garlinghouse, calling him a “great CEO” and describing their interaction as “extremely collaborative.” This public exchange has fueled speculation that Cardano and Ripple might explore a strategic partnership.
Will Cardano Founder Partner With Ripple CEO?
Cardano founder Charles Hoskinson’s recent comments align with growing calls for collaboration in the cryptocurrency industry.
In his post, Ripple CEO Brad Garlinghouse echoed this sentiment, urging the crypto community to “come together” to advocate for a “level playing field” and regulatory clarity. He emphasized the need for clear “rules of the road” to foster a fair environment for all crypto assets and companies. “A rising tide lifts all boats,” Garlinghouse wrote, suggesting that a unified crypto industry could benefit the entire ecosystem.
This message of unity comes at a time when regulatory pressures and market challenges continue to affect the crypto sector. Ripple, in particular, has been embroiled in a long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), a case that many believe could set an important precedent for the industry. With Hoskinson’s endorsement and Garlinghouse’s call for collaboration, the potential Ripple-Cardano partnership might aim to strengthen both companies’ positions in the market and support regulatory reform efforts.
This Is A Breaking News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Robinhood CEO Vlad Tenev gave his opinion on the recent Bitcoin price rally to as high as $90,000 and how US President-elect Donald Trump has contributed to this development. Tenev also suggested that the crypto industry in the US could begin to thrive now with Trump as the next president.
Robinhood CEO Comments On Bitcoin Rally And Trump’s Impact
During a CNBC interview, Vlad Tenev mentioned that the Bitcoin rally is simply what many have referred to as the ‘Trump Pump.’ He opined that the market is reacting to the widespread optimism that the Donald Trump administration will take a more positive approach to the crypto industry since the US President-elect has promised to embrace cryptocurrencies and make the US the center of crypto innovation.
The BTC price has risen over 24% in the last seven days, and Donald Trump has undoubtedly contributed to this rally, given that he took a pro-crypto stance right from the beginning of his campaign. The Robinhood CEO further explained how Donald Trump’s pro-crypto stance could matter.
He cited the US Securities and Exchange Commission’s (SEC) regulation-by-enforcement approach over the last four years and how that could change under Trump. Vlad Tenev noted how this stifled crypto innovation in the US and forced several crypto firms offshore.
He remarked that the idea is that the US SEC’s regulation-by-enforcement approach will stop under the Donald Trump administration and that there will be legislation that provides regulatory clarity. The Robinhood CEO remarked that this innovation could come through since the Republicans control the executive and legislative branches.
Potential Game-Changing Changes Under Donald Trump
The Robinhood CEO mentioned asset tokenization could become more feasible in the US under Donald Trump. He hinted at the possibility of traditional finance (TradFi) being more integrated into the decentralized finance (DeFi) space under the next administration.
Tenev used his company, Robinhood, as a case study of why such a move could matter. According to him, they spend less managing their crypto business due to the cost-effectiveness of blockchain technology. He cited an instance of how TradFi could benefit from the 24/7 trading services that the blockchain provides.
Interestingly, Robinhood Chief Legal Officer (CLO) Dan Gallagher has emerged as one of the potential candidates to replace US SEC Chair Gary Gensler. Meanwhile, a Donald Trump administration will undoubtedly be a welcome development for the Robinhood CEO and his team, considering that the US SEC warned them earlier in the year about their crypto business.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
XRP lawyer Bill Morgan has explained why Ripple is unlikely to promote XRP in the same way that Bitcoin is widely promoted. The remarks were made in response to a suggestion that Ripple could boost XRP’s popularity among retail investors by engaging in promotional activities similar to those seen with Bitcoin and other cryptocurrencies.
Bill Morgan noted that such actions could impact Ripple’s ongoing legal case with the U.S. Securities and Exchange Commission (SEC).
XRP Lawyer On Why Ripple Unlikely To Promote XRP
XRP lawyer Bill Morgan has emphasized that Ripple’s cautious approach to promoting XRP is largely influenced by its ongoing legal battles with the SEC. He pointed out that the court found Ripple’s sales of XRP did not meet the requirements of the Howey Test—a legal standard used to determine if an asset qualifies as a security.
Specifically, the court ruled that Ripple’s programmatic sales of XRP to retail holders did not constitute investment contracts, a decision largely based on the “relative lack of evidence of promotion of XRP to retail holders,” according to Morgan.
However, the SEC is actively appealing this ruling, and Ripple remains under scrutiny. As a result, any promotional efforts targeting retail investors could increase regulatory risks for Ripple. “I doubt Ripple ever will [promote XRP] and certainly not before legal proceedings are long in the rearview mirror,” Morgan added, highlighting the company’s cautious stance amid regulatory uncertainty.
Bitcoin Enjoys Regulatory Advantage, XRP Lawyer Says
XRP lawyer Bill Morgan has contrasted the promotional limitations on XRP with Bitcoin, noting that Bitcoin holders and advocates can promote the cryptocurrency freely without SEC interference. Since Bitcoin is widely recognized as a non-security asset, it does not face the same regulatory challenges that other digital assets like XRP encounter.
This gives Bitcoin a unique advantage, as supporters can openly encourage investments in Bitcoin without risking legal consequences.
The difference in regulatory treatment has created an “unfair SEC-created advantage over the whole market,” Morgan observed. This discrepancy has allowed Bitcoin’s adoption to flourish without the legal complexities faced by XRP and other assets. As Bitcoin’s price recently surged past $89,000 amid heightened interest from retail and institutional investors, the disparity in regulatory oversight between Bitcoin and other cryptocurrencies has become even more evident.
Concurrently, Cardano’s ADA token saw massive gains after Charles Hoskinson’s announcement, rising over 33% as speculation grew around its potential role in shaping U.S. crypto policy under the current Trump administration.
Legal Developments in SEC v. Ripple Case Ongoing
The SEC’s appeal in the Ripple case has been closely watched by the cryptocurrency industry, as it may set precedents for the treatment of digital assets. Recently, the U.S. Court of Appeals for the Second Circuit issued a scheduling order that requires the SEC to submit its opening brief for the appeal by January 15, 2025.
According to analysts, this delay may be linked to the potential impact of the upcoming U.S. presidential election, as some speculate that a change in administration could lead to shifts in regulatory priorities.
If the SEC fails to meet this deadline, the appeal could be dismissed, potentially providing Ripple with a clearer regulatory pathway. However, until the appeal is resolved, Ripple is likely to maintain a conservative approach regarding XRP promotion, according to legal experts.
Ripple CEO Brad Garlinghouse Optimistic Amid XRP Price Surge
Despite Ripple’s cautious stance, the XRP community has shown renewed optimism about the cryptocurrency’s future. XRP price has recently surpassed $0.61, sparking speculation of a possible price rally reminiscent of its 2017 highs.
Ripple CEO Brad Garlinghouse recently noted that XRP was once the “2nd most valuable digital asset,” and some community members are hopeful that the token may regain its former value as regulatory clarity improves.
Other factors are also boosting market sentiment around XRP, including the possibility of an XRP exchange-traded fund (ETF) approval in the United States, which could increase institutional interest in the asset.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
PEPE Price Eyes a Potential Return to Its Highest May Levels
Binance CMO Rachel Conlan on Pushing Crypto into Mainstream
Cardano Unlikely To Outperform Other Major Coins, Ben Armstrong Explains Why
Will Bitcoin’s Price Rally Past $90K?
Cardano Founder Teases Potential Partnership With Ripple
Dogecoin Price Breaks Legendary Pennant Pattern, Here’s The Next Target
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Coinbase cbBTC Set to go Live on Solana
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Coinbase cbBTC Set to go Live on Solana
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
-
Market23 hours agoWill Shiba Inu Price Rally Past the $0.000028 Barrier?
-
Market18 hours agoNamechain by ENS Labs Boosts Ethereum Accessibility
-
Market17 hours agoCardano (ADA) Rally on Hold: Will It Break Out Again Soon?
-
Altcoin17 hours agoShiba Inu Bull Run Helps Whale Net Millions In Profit, SHIB Price ATH in Sight?
-
Ethereum17 hours agoEthereum Could Be Set To Explore New Highs As On-Chain Metrics Light Up
-
Market22 hours agoMicroStrategy Makes Its Largest Purchase as Bitcoin Hits $84,000
-
Market21 hours agoIs The $100K Dream Closer Than Ever?
-
Market20 hours agoBhutan Holds $1 Billion in Bitcoin Amid Growing State Adoption
✓ Share: