- Custodia’s application did not meet legal requirements
- Cryptocurrencies incompatible with safe and sound banking practices
- Custodia seeks same regulation as traditional banks
The United States Federal Reserve has declined Custodia Bank’s request to review its application for membership in the Federal Reserve System.
Read CRYPTONEWSLAND on
google news
The Fed announced its refusal, stating that the Federal Reserve Board had already determined that Custodia’s application did not meet the legal requirements.
In addition, it cited a joint statement issued by both Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, which stated that cryptocurrencies were incompatible with safe and sound banking practices.
Custodia has expressed a desire to join the Federal Reserve System so it may be governed by the same regulations as traditional banks and pave the way for other crypto-banks to be subject to the same stringent regulations.
In related news, the U.S. Securities and Exchange Commission and New York’s top financial regulators opposed Binance’s $1 billion acquisition of cryptocurrency lender Voyager, according to published sources. This is the most recent regulatory action against cryptocurrency firms.
According to a filing by the SEC, the proposed transaction may violate regulations governing the unregistered offer and sale of securities. Furthermore, it asserted that a U.S. probe might render the purchase difficult.
Read Also:
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
