Crypto-friendly bank Custodia Bank cuts jobs in ongoing lawsuit with Federal Reserve to preserve capital

On August 30th, according to Fox Business, the Biden administration's regulatory crackdown on cryptocurrencies has led to a major restructuring of a small but high-profile crypto bank. Custodia Bank, a Wyoming-based financial institution group that provides banking services to cryptocurrency companies, informed employees Thursday morning that it would lay off nine of its 36 employees in a court battle with the U.S. central bank to preserve capital, the media learned. The layoffs come as Custodia is locked in a legal battle with the Federal Reserve, which it is battling for so-called master accounts that allow state-chartered institutions to use the Fed's liquidity facilities, including payment services. Without a master account, the bank is forced to conduct business through other institutions that have master accounts, often at high cost.