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Custodia Bank Files Appeal Stating Fed’s Law Violation & Dual Banking System

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Custodia Bank has filed an opening brief in the 10th Circuit Court of Appeals. They are challenging a Wyoming judge’s decision that granted the Federal ReserveFederal Reserve the power to deny it a master account. Moreover, the brief urges the appeals court to instruct the Wyoming district court to revoke its denial and grant Custodia a master account.

Custodia Bank Files Opening Brief In 10th Circuit

Custodia Bank CEO Caitlin Long has hired two veteran Supreme Court attorneys for the lawsuit against Fed. Their arguments are focused on several key points, including violation of the dual banking system. Custodia Bank’s lawyers argue that the Fed’s authority to deny master accounts to state-chartered banks undermines the dual banking system.

This system allows banks to choose between a state charter or a federal charter. Hence, they referenced the case Cantero v. Bank of America. The 10th circuit brief stated, “The United States maintains a dual system of banking, made up of parallel federal and state banking systems.”

In addition, Custodia’s lawyers also argue that the Fed’s power to discriminate against state-chartered banks may violate the Monetary Control Act (MCA). The MCA ensures fair access for state-chartered banks to the Fed’s services. In addition, they pointed to Congress’s mention of the word “shall” in the MCA, which states that “all Federal Reserve bank services…shall be available to non-member depository institutions.”

Furthermore, Custodia’s brief asserts that there is no basis for the Fed’s actions to be immune from judicial review. They argue that mandamus relief is available against the Federal Reserve Bank of Kansas City (FRBKC). Moreover, they state that the Administrative Procedure Act provides a remedy against the Board when it defies a congressional command.

In addition, the brief explains the historical significance of the dual banking system. It highlights that this system has survived for over 150 years and continues to be durable and responsive to the economy. Hence, the dual banking system respects distinct and equal state and federal roles.

Also Read: Custodia Bank CEO Predicts “Rip Roaring” Bitcoin Bull Market, Slams Warren Wing

Other Arguments Against Fed

Wyoming enacted a statute in 2019 to allow qualified applicants to obtain a Special Purpose Depository Institution (SPDI) charter, Custodia’s brief highlights. SPDIs take deposits, facilitate U.S. dollar payments, and provide digital asset custody services.

Moreover, they do not lend and must comply with all applicable federal laws. This is central to the Custodia Bank case because the Fed’s refusal to grant a master account to an eligible SPDI like Custodia is discriminatory.

Furthermore, the brief explains that the MCA was enacted to address payment access and unequal treatment of member and non-member banks. The MCA required the Fed to provide all depository institutions direct access to its payment system services on the same terms as member banks.

In addition, Custodia’s lawyers argue that Section 248a(c)(2) of the MCA sets forth a fee schedule for Fed services and requires these services to be available to nonmember depository institutions. The brief states, “All Federal Reserve bank services covered by the fee schedule shall be available to nonmember depository institutions.”

Also Read: Ripple Vs SEC News: Ripple President Clears the Air on Lawsuit and XRP ETF

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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.





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Japan Set To Classify Cryptocurrencies As Financial Products, Here’s All

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Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.

Japan Targets Reclassification Of Cryptocurrencies As Financial Products

According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.

Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.

The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.

The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.

Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.

A Fresh Bill For Crypto Insider Trading Is Underway

Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.

“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”

However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.

Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.

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Aliyu Pokima

Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.

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.





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Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.

Bitcoin Rights Bill Comes Into Effect

Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.

In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:

The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.

The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.

The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.

On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.

Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.

Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.

Renewed Optimism Under Trump Administration

Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.

Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.

The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.

bitcoin
BTC trades at $87,399 on the daily chart | Source: BTCUSDT on TradingView.com

Featured Image from Unsplash.com, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

This Is A Developing News, Please Check Back For More

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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.





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