XRP News: Custodia Bank Case More Important Than Ripple Lawsuit: XRP Lawyer

XRP News: U.S. Securities and Exchange Commission Vs Ripple Labs lawsuit is seen as a legal dispute which will lead the cryptocurrency industry to regulatory clarity. However, XRP holders’ lawyer suggests that now the Custodia Bank case holds the key for the digital asset market.

Also Read: Binance’s CZ Addresses Crypto Crash As Long Liquidation Breaches $343 Million

Custodia Case Crucial For Crypto Industry

In the latest U.S. district court ruling, Judge denied the Federal Reserve’s motion to dismiss a lawsuit filed by the Custodia bank. However, the court rejected the bank’s request to compel the Fed to grant its master account and membership. Custodia Bank can now pursue its claims through normal channels.

Attorney John Deaton, Amicus curiae in the XRP lawsuit stated that the Custodia case has arguably become the important case despite Ripple and Coinbase’s pending cases. Highlighting Chokepoint 2.0 with the failure of multiple banks like Silicon Valley Bank, Signature Bank, and other banks, he stated that crypto firms always need banking for on and off ramps. Read More XRP News Here…

He mentioned that the Custodia Bank holds a very revolutionary idea of not engaging in fractional banking maintaining funds in reserve. The attorney stated that when you have 100% reserves, a bank run becomes a non issue. This is because then there would be no panic about not getting funds or assets out.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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