Custodia Bank has announced significant layoffs, with plans to reduce its workforce by 25%, translating to nine out of 36 positions. This move comes as the bank grapples with financial pressures connected to the Biden administration’s stringent regulatory stance on digital assets.
Additionally, Custodia Bank is currently facing hurdles in its legal confrontations with the Federal Reserve, adding to its operational challenges in an increasingly tough regulatory environment for cryptocurrencies.
The growing regulatory scrutiny could potentially change if there's a shift in political dynamics, raising questions about whether tighter regulations might be eased under a different administration, such as if Trump were to assume leadership again.
