Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated - Ep. 687 | Unchained

This podcast episode dives deep into Custodia Bank's legal battle against the Federal Reserve, highlighting the systemic challenges faced by the crypto industry within the U.S. banking framework. Through insightful discussions with industry leaders Caitlin Long and Michelle Kallen, it unpacks the political motivations behind regulatory decisions, the innovative spirit of state-chartered banks, and the clash between traditional banking practices and the evolving landscape of digital finance. The episode ultimately underscores the necessity of fair regulatory frameworks that accommodate innovation while providing durable banking solutions for the crypto sector.

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Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated - Ep. 687

Unchained

00:00Book Event Announcement in Seoul

Book Event Announcement in Seoul

00:44Operation Choke Point 2.0 and Custodia's Legal Battle

Operation Choke Point 2.0 and Custodia's Legal Battle

01:05Introducing Unchained's Guests: Caitlin Long and Michelle Kallen

Introducing Unchained's Guests: Caitlin Long and Michelle Kallen

02:38Custodia's Vision: Durable Banking for the Crypto Industry

Custodia's Vision: Durable Banking for the Crypto Industry

03:33Wyoming's Role in Creating a New Bank Charter

Wyoming's Role in Creating a New Bank Charter

04:43Michelle Kallen's Journey into the Crypto Space

Michelle Kallen's Journey into the Crypto Space

06:17Custodia's Path to a Master Account: A Timeline

Custodia's Path to a Master Account: A Timeline

08:34Understanding the Dual Banking System in the US

Understanding the Dual Banking System in the US

10:51Custodia's Decision to Apply for FDIC Insurance

Custodia's Decision to Apply for FDIC Insurance

12:50State-Chartered Banks: More Innovative, Less Technophobic

State-Chartered Banks: More Innovative, Less Technophobic

16:05Two Steps: Access to the Payment System and Membership Bank Status

Two Steps: Access to the Payment System and Membership Bank Status

18:18Custodia's Early Encounters with Regulatory Delays

Custodia's Early Encounters with Regulatory Delays

19:43A Timeline of Custodia's Journey with the Fed

A Timeline of Custodia's Journey with the Fed

20:57The Decision to Sue: Fighting for a Fair Process

The Decision to Sue: Fighting for a Fair Process

23:37The Fed's Change in Stance: From Simple Process to Strict Guidelines

The Fed's Change in Stance: From Simple Process to Strict Guidelines

25:31The Fed's 86-Page Denial and Its Critiques of Custodia

The Fed's 86-Page Denial and Its Critiques of Custodia

26:36Responding to the Fed's Criticisms: Political Motivation

Responding to the Fed's Criticisms: Political Motivation

28:31Mismatched Evidence: Terraluna, Celsius, and Voyager

Mismatched Evidence: Terraluna, Celsius, and Voyager

29:33Custodia's Perceived Association with Bitcoin: A "Original Sin"

Custodia's Perceived Association with Bitcoin: A "Original Sin"

30:42Challenging the Lack of Banking Experience Argument

Challenging the Lack of Banking Experience Argument

31:17The Fed's Coordination with the White House and the Press

The Fed's Coordination with the White House and the Press

33:08The Politicization of Custodia's Denial: Dick Durbin and Bharat Ramamurthy

The Politicization of Custodia's Denial: Dick Durbin and Bharat Ramamurthy

35:49Lael Brainard's Role in Custodia's Denial

Lael Brainard's Role in Custodia's Denial

38:38The District Court's Decision in Favor of the Fed

The District Court's Decision in Favor of the Fed

39:37Custodia's Appeal to the 10th Circuit

Custodia's Appeal to the 10th Circuit

41:47Introducing Ian Gershengorn, Custodia's New Legal Counsel

Introducing Ian Gershengorn, Custodia's New Legal Counsel

43:38B

B

46:39The Loper-Bright Decision and Its Impact on Custodia's Case

The Loper-Bright Decision and Its Impact on Custodia's Case

49:52The Fed's Enforcement Action Against Customers Bank and its Timing

The Fed's Enforcement Action Against Customers Bank and its Timing

52:00The Fed's Use of Enforcement Actions as a Weapon

The Fed's Use of Enforcement Actions as a Weapon

54:24SEC's SAB 121 and the Granting of Exemptions to Large Banks

SEC's SAB 121 and the Granting of Exemptions to Large Banks

56:07The Lack of Diversity in the Banking Industry: A Shocking Reality

The Lack of Diversity in the Banking Industry: A Shocking Reality

58:38The Clubbiness of the Banking Industry

The Clubbiness of the Banking Industry

1:00:02The Fed's Arbitrary Decision-Making and Pick-and-Choose Approach

The Fed's Arbitrary Decision-Making and Pick-and-Choose Approach

1:00:18The Overruling of Chevron Deference and Its Implications

The Overruling of Chevron Deference and Its Implications

1:02:59Custodia's Hopes for a Victorious Outcome

Custodia's Hopes for a Victorious Outcome

1:04:05The Fed's Stumbling Block to Custodia's Stablecoin Plans

The Fed's Stumbling Block to Custodia's Stablecoin Plans

1:06:08The Election's Potential Impact on Custodia's Fate

The Election's Potential Impact on Custodia's Fate

1:08:07Progressives and the Importance of State Courts and Innovation

Progressives and the Importance of State Courts and Innovation