Crypto Bank Custodia Plans More Layoffs Amid Intense Regulatory Scrutiny ⚖️

Custodia Bank, a Wyoming-based crypto bank, is facing the possibility of further layoffs due to intense regulatory scrutiny under the Biden administration. This comes after the bank already cut 25% of its staff back in August to preserve capital amid its ongoing legal battle with the Federal Reserve.

The bank is contesting the Fed's denial of a master account, crucial for accessing liquidity facilities. The lawsuit is scheduled for oral arguments on January 21, coinciding with the anticipated inauguration of Donald Trump.

With hopes of a friendlier regulatory environment under Trump, the crypto industry anticipates a shift in policy that may alleviate current pressures, as exemplified by recent comments from Coinbase CEO Brian Armstrong urging a policy change.

Similar regulatory challenges are faced by other companies, such as Consensys, which recently announced significant layoffs due to pressures from the SEC, amongst other factors in the US. The anticipation of Trump’s pro-business stance could mean a potential easing in regulations for the industry.

The broader crypto sector continues to endure regulatory hurdles, yet remains cautiously optimistic that the upcoming administration will bring a more supportive environment.